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Pegasus Wireless Corporation Summary: The original complaint charges Pegasus and certain of its officers and directors with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. Beginning with an August 24, 2006 report published by The MotleyFool.com, investors were shocked and alarmed to learn a series of disturbing reports on Pegasus and its management, including: (1) Pegasus failed to disclose CEO Jasper Knabb's and CFO Stephen Durland's close business ties with convicted felons, securities fraudsters and the like; (2) Pegasus failed to disclose a series of related party transactions and the manner in which Knabb purchased more than $26 million in Pegasus stock; (3) Pegasus withheld pertinent information involving Knabb's history with penny stock companies with suspicious trading patterns. The revelation of this news caused Pegasus shares to decline almost 25% on volume of almost 2 million shares from the closing price of $7.60 per share two days earlier.
The complaint further alleges that at the close of the Class Period, over Labor Day weekend, a report by Barron's revealed that: (1) Knabb had previously been arrested for possible insurance fraud; (2) Two former Knabb companies -- BIFS Technologies, formerly Biofiltration Systems, and Wireless Frontier -- evidenced suspected stock and market manipulation; (3) Pegasus failed to disclose the truth concerning the novelty and uniqueness of its products and the foreseeability to compete in the current marketplace. Following the Barron's report, on September 5, 2006, the first day of trading after the Labor Day weekend, shares of Pegasus plummeted to a trading low of $1.10 per share, falling over 36.5% on huge volume of almost 18 million shares.
NOTE: On January 28, 2008, the Pegasus Wireless Corporation filed a Chapter 11 voluntary petition for bankruptcy.
On September 26, 2007, the Court issued the Order appointing the Pournaras Group as Lead Plaintiff and approving the selection of the law firm of Kahn Gauthier Swick, LLC, as Lead Counsel. The Court also issued the Order consolidating three related actions under In Re Pegasus Wireless Corporation Securities Litigation, 3:06-CV-06969-MHP. Lastly, the Court issued the Order transferring the action from the U.S. District Court for the Northern District of California to the Southern District of Florida, West Palm Beach Division.
On July 11, 2008, the lead plaintiffs filed Consolidated Amended Class Action Complaint. On September 5, 2008, the defendants filed various motions to dismiss the Consolidated Amended Class Action Complaint. On September 21, 2009, the Court entered several Order and Opinions signed by Judge Kenneth A. Marra granting the defendants’ motions to dismiss without prejudice. The plaintiffs have leave to file a Second Amended Complaint within 20 days of the date of the Orders.
INDUSTRY CLASSIFICATION:
SIC Code: 3661
Sector: Technology
Industry: Communications Equipment
| COMPANY/ISSUER NAME: | Pegasus Wireless Corporation |
| COMPANY/ISSUER TICKER: | PGWC |
| COMPANY WEBSITE: | http://www.pegasuswirelesscorp.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Michael Mitchell, et al. v. Pegasus Wireless Corporation, et al. | |||||||||||||||||
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| REFERENCE COMPLAINT | |||||||||||||||||
| In Re: Pegasus Wireless Corporation Securities Litigation | |||||||||||||||||
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| DOCUMENTS FOR THE REFERENCE COMPLAINT | |||
| Consolidated Amended Class Action Complaint For Violations Of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 07/11/2008 | ||
| Joint Stipulation Of Voluntarily Dismissal Without Prejudice As To Defendant Douglas Hirsch | |||
| Type: Other | Date on the document: 07/11/2008 | ||
| Order | |||
| Type: Order | Date on the document: 07/14/2008 | ||
| Amended Order And Opinion Granting Peraticos’s Motion To Dismiss | |||
| Type: Order | Date on the document: 09/21/2009 | ||
| Order And Opinion Granting Chich-Hsing Tsao’s Motion To Dismiss | |||
| Type: Order | Date on the document: 09/21/2009 | ||
| Order and Opinion Granting Nicholas Peratico's Motion To Dismiss | |||
| Type: Order | Date on the document: 09/21/2009 | ||
| Order And Opinion Granting Pollard-Kelly’s Motion To Dismiss | |||
| Type: Order | Date on the document: 09/21/2009 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 09/21/2009 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded | |||
| Case Name and/or Number: Nick Pournaras, et al. v. Pegasus Wireless Corporation, et al. | |||
| Type: Complaint | Date on the document: 09/05/2007 | ||
| U.S. District Court Civil Docket | |||
| Case Name and/or Number: Kathleen Murphy, et al. v. Pegasus Wireless Corporation, et al. | |||
| Type: Docket | Date on the document: 09/26/2007 | ||
| U.S. District Court Civil Docket | |||
| Case Name and/or Number: Nick Pournaras, et al. v. Pegasus Wireless Corporation, et al. | |||
| Type: Docket | Date on the document: 09/26/2007 | ||
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