Faruqi & Faruqi, LLP Announces Investigation of Powerwave Technologies, Inc. (PWAV)
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Powerwave Technologies, Inc. (“Powerwave” or the “Company”) (Nasdaq: PWAV).
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.
If you purchased Powerwave securities between February 1, 2011 and October 18, 2011 and would like to discuss your legal rights, you can 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 email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Powerwave’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.