NEW YORK, Feb. 10, 2012 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Powerwave Technologies, Inc. ("Powerwave" or the "Company") (Nasdaq: PWAV).
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The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company was experiencing a severe decline in demand from North American customers; and (2) Powerwave was rapidly depleting its free cash flow as revenues tumbled and expenses soared.
On October 18, 2011, Powerwave issued a press release announcing that the Company "anticipates that revenues for its fiscal third quarter ended October 2, 2011 will be in the range of $75 million to $79 million." General expectations had been $168.4 million. Following the issuance of the press release, Powerwave held a conference call to discuss the announcement. During the conference call, the Company admitted that it was performing poorly and running out of free cash. In response to the announcement, on October 19, 2011, the price of Powerwave common stock declined from $1.46 per share to $0.85 - 42% drop - on extremely heavy trading volume.
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Take Action
If you purchased Powerwave securities between February 1, 2011 and October 18, 2011 and would like to discuss your legal rights, visit www.faruqilaw.com/PWAV. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Powerwave's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Francis McConville, Esq.
fmcconville@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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