Wolf Haldenstein Adler Freeman & Herz LLP commenced a class action lawsuit in the United States District Court for the Northern District of Texas, Dallas Division on behalf of all purchasers of Weblink Wireless, Inc. ("Weblink") (NASDAQ:WLNK) securities during the period between December 29, 2000 and February 20, 2001 ("Class Period") against Weblink and John D. Beletic (Chairman and Chief Executive Officer). If you wish to read a copy of the complaint, please click the Complaint link.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder.
According to the complaint, defendants issued a series of false and misleading statements to the market and made material omissions in violation of the federal securities laws which resulted in artificially inflated prices for the Company's common stock. Specifically, the complaint alleges that Defendant Beletic stated on December 29, 2000 that a shelf registration for 8.5 million shares of Weblink common stock had been declared effective by the SEC and that the "effectiveness of the shelf registration works very well for us" with respect to obtaining the financing necessary to satisfy Weblink's cash requirements. This statement was materially false and misleading because defendant Beletic knew on December 27, 2000, two days prior to this statement, that "the sale of these registered common shares would no longer meet our capital needs." Defendant Beletic admitted this fact in a conference call on February 21, 2001, after the end of the Class Period. Defendants knew that the failure of the equity financing to satisfy Weblink's capital needs would likely result in a going concern audit opinion if Weblink could not raise the necessary capital. As a result of this announcement, the price of Weblink stock fell 42% on February 21, 2001, suffering the second largest percentage decline on NASDAQ.
Additional cases were filed on behalf of investors. On May 14, 2001, motions were made to consolidate the various actions and appoint lead plaintiff and counsel. Wolf Haldenstein was appointed lead counsel. On April 24, 2002, a consolidated amended complaint was filed. Defendants filed a motion to dismiss. The Court granted the motion to dismiss with prejudice.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 60 attorneys in various practice areas; and offices in Chicago, New Jersey, New York City, San Diego, and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735.