Case Page

 

Case Status:    DISMISSED    
On or around 04/01/2010 (Date of order of final judgment)

Filing Date: November 07, 2006

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.

On October 23 and November 4, 2009, defendants filed two motions to dismiss. On March 16, 2010, Judge Kenneth A. Marra signed the Final Judgment dismissing the case. All pending motions were denied as moot. The case was closed. On April 1, 2010, Judge Marra signed an Amended Final Judgment.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PGWC
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: S.D. Florida
DOCKET #: 06-CV-06969
JUDGE: Hon. Marilyn H. Patel
DATE FILED: 11/07/2006
CLASS PERIOD START: 12/22/2005
CLASS PERIOD END: 09/05/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kahn Gauthier Swick, LLC (New Orleans)
    650 Poydras St. Suite 2150, Kahn Gauthier Swick, LLC (New Orleans), LA 70130
    504.455.1400 · lewis.kahn@kglg.com
  2. Schubert & Reed LLP
    Two Embarcadero Center, Suite 1050, Schubert & Reed LLP, CA 94111
    415.788.4220 415.788.0161 · mail@schubert-reed.com
No Document Title Filing Date
COURT: S.D. Florida
DOCKET #: 07-CV-81113
JUDGE: Hon. Marilyn H. Patel
DATE FILED: 07/11/2008
CLASS PERIOD START: 12/22/2005
CLASS PERIOD END: 09/05/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kahn Gauthier Swick, LLC (New Orleans)
    650 Poydras St. Suite 2150, Kahn Gauthier Swick, LLC (New Orleans), LA 70130
    504.455.1400 · lewis.kahn@kglg.com
  2. Kahn Gauthier Swick, LLC (NY)
    12 East 41st Street, 12th Floor, Kahn Gauthier Swick, LLC (NY), NY 10016
    212.920.4310 212.696.3730 · info@kglg.com
No Document Title Filing Date
No Document Title Filing Date