Case Page

 

Case Status:    DISMISSED    
On or around 04/30/2002 (Other)

Filing Date: July 11, 2001

According to the docket, on September 10, 2001, the plaintiffs filed a motion to appoint M. Beckman Ltd. and Red Mountain Holdings Ltd. as lead plaintiff and for approval of lead plaintiff's choice of counsel. On September 28, 2001, U.S. Wireless Corporation filed a notice of bankruptcy. On April 22, 2002, the Court issued the Order granting the motion to appoint lead plaintiff and lead counsel, but that same day, the Court also issued the Minute Entry from a Case Management Conference held that day before U.S. District Judge Marilyn H. Patel. According to the minutes, Defendant U.S. Wireless is in bankruptcy and, further, the Court will issue an order to administratively close the action pending notification from counsel. The next day, the Court issued the Order by the judge dismissing the case for statistical purposes.

The complaint charges U.S. Wireless and its former Chairman and CEO with violations of the Securities Exchange Act of 1934. The Company, through a national network of wireless location systems, enables wireless carriers to offer location-enhanced services, including 911 caller pinpointing, localized news and traffic updates, vehicle and asset tracking, and carrier network management services. The complaint alleges that during the Class Period, in order to conceal their self dealing transactions, defendants caused the Company to falsely report its results for fiscal 2000 through improper characterization of the benefit and the beneficiaries of the issuance of shares of the Company's stock. As a result of this mischaracterization, the Company's net loss attributable to common shareholders was understated by $6.2 million, or 35%. Ultimately, U.S. Wireless revealed that its results for fiscal 2000 were in error and would be restated to record the share issuances at fair market value and record a loss of $5.3 million for the shares and $0.9 million for certain tax effects. Absent defendants' improper accounting, the Company would have reported much less favorable fiscal 2000 earnings.

The complaint further alleges that on or around May 29, 2001, Nasdaq issued an unusual press release entitled ``Nasdaq Halts Trading of U.S. Wireless Corporation and Requests Additional Information from Company.'' On this news, U.S. Wireless shares were halted from trading at $2.91, 88% lower than the Class Period high of $24.50.

COMPANY INFORMATION:

Sector: Services
Industry: Communications Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: USWC
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. California
DOCKET #: 01-CV-02637
JUDGE: Hon. Wayne D. Brazil
DATE FILED: 07/11/2001
CLASS PERIOD START: 06/29/1999
CLASS PERIOD END: 05/26/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (CA)
    425 California Street, Suite 2025, Berman DeValerio Pease Tabacco Burt & Pucillo (CA), CA 94104
    415.433.3200 415.433.6382 ·
  2. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  3. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
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