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Undisclosed licensure issues for Straight Path precede class action

 

A securities class action suit has been filed against a self-described “intangible asset monetization company” following allegations that it violated federal securities laws.

The lawsuit against Straight Path Communications Inc. was filed in the US. District Court for the District of New Jersey on behalf of investors who purchased shares in the company during the class period between Oct. 29, 2013 and Nov, 5, 2015, according to a press release. The firm specializes in producing monetary value from assets such as microwave bandwidth licenses and intellectual property, its website explained. The company offers its services to mobile network operators and Internet service providers to improve their communications and data transmissions.

“The lawsuit claims that Straight Path obtained its spectrum licenses improperly.”

The class action suit claims the defendants released materially false and misleading statements and failed to disclose several important details about Straight Path to investors. The lawsuit alleges that the company oversold the commercialization potential of its spectrum assets. In addition, the class action filing claims that Straight Path obtained its spectrum licenses improperly.

The firm’s Form 8-K, published by StreetInsider.com, acknowledges “anonymous allegations” regarding the way its spectrum licenses were obtained from the Federal Communications Commission in 2011 and 2012. The company noted that it had begun an investigation into the matter, while adding that it believed that it had obtained the licenses in a proper manner.

The Form 8-K went on to explain that Straight Path had notified the FCC of the status of its investigation, and if that the agency found that the company improperly obtained spectrum licenses it could take disciplinary action.As a result of these facts, the class action suit claims that all Straight Path’s public statements during the relevant period were materially false and misleading and/or lacked reasonable basis.

For more information on this case or other class action litigations, please contact Adam Foulke at 203-987-4949 or info@battea.com.

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