Powerwave Securities Litigation
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Welcome to the Powerwave Securities Litigation Website

This website has been established to provide general information regarding the proposed settlement of the action entitled Kmiec v. Powerwave Technologies Inc., et al., No. 8:12-cv-00222-CJC(JPRx) pending in the United States District Court for the Central District of California, Southern Division (the "Court"). The capitalized terms used on this website and not defined herein shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated October 30, 2015. Your rights may be affected by this settlement if you purchased Powerwave Technologies Inc. ("Powerwave") common stock from October 28, 2010, through and including October 18, 2011 (the "Class Period"), and were damaged thereby.

As more fully described in the Notice of Pendency and Proposed Settlement of Class Action (the "Notice"), this Litigation arises under §§10(b) and 20(a) of the Securities Exchange Act of 1934, and alleges that during the period between October 28, 2010 and October 18, 2011, inclusive, Defendants Ronald J. Buschur and Kevin T. Michaels made materially false and misleading statements about Powerwave’s business practices and financial results. More specifically, Lead Plaintiff alleged that during the Class Period, Defendants caused Powerwave to report artificially inflated financial results in an effort to meet or exceed its financial guidance.

Lead Plaintiff alleged that during the Class Period, Defendants knew or recklessly disregarded that demand for Powerwave’s products was declining, and to offset the declining demand Defendants engaged in an accounting scheme to artificially inflate Powerwave’s revenue and earnings by: (1) shipping “bulk orders” of unsellable inventory to resellers on a contingent basis, whereby Powerwave would grant special extended payment terms and rights to return the product; and (2) knowingly and deliberately shipping product that Powerwave knew did not function, with the promise to replace the products in a later quarter. Lead Plaintiff further alleged that this scheme artificially inflated Powerwave’s stock price during the Class Period. On October 18, 2011, Powerwave announced lower than anticipated revenues for the third fiscal quarter of 2011 as a result of a decline in demand for Powerwave’s products. Powerwave’s stock price declined to $0.68 per share. On January 28, 2013, Powerwave filed for bankruptcy protection.

The two sides vigorously disagree on both liability and the amount of money that could have been won if Lead Plaintiff prevailed at trial. The parties disagree about: (1) whether the Defendants knew the alleged false statements were false when made; (2) the method for determining whether the price of Powerwave common stock was artificially inflated during the relevant period; (3) whether there was any such inflation and the amount of any such alleged inflation; (4) that there was any wrongdoing on the part of Defendants; (5) the extent that various facts alleged by Lead Plaintiff influenced the trading price of Powerwave common stock during the Class Period; and (6) whether the facts alleged were material, false, misleading or otherwise actionable under the federal securities laws.

In the course of the Litigation, the Settling Parties engaged the services of the Honorable Layn R. Phillips (Ret.), a nationally recognized mediator. The Settling Parties engaged in an in-person mediation session with Judge Phillips on March 6, 2015. While the Settling Parties did not reach an agreement to settle the Litigation at the mediation, the Settling Parties continued settlement negotiations with the assistance of Judge Phillips. These efforts culminated with the Settling Parties agreeing to settle the Litigation for $8,200,000.

Per the terms of the settlement agreement, the Defendants have agreed to pay $8,200,000 in cash. The balance of this fund after payment of Court-approved attorneys’ fees and expenses, taxes and the costs of claims administration, including the costs of printing and mailing the Notice and the cost of publishing newspaper notice (the “Net Settlement Fund”) will be divided among all eligible Class Members who submit valid, timely Proof of Claim and Release forms ("Claimants") under the Plan of Allocation (the "Plan") described in the Notice. The Plan provides that Claimants will be eligible to participate in the distribution of the Net Settlement Fund only if Claimants have a net investment loss.

The Court appointed Robbins Geller Rudman & Dowd LLP to represent you and other Class Members. These lawyers are called Lead Counsel. You will not be charged directly for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice and Stipulation, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

SUBMIT A PROOF OF CLAIM AND RELEASE FORM The only way to get a payment.
GO TO A HEARING Ask to speak in Court about the fairness of the settlement.
DO NOTHING Get no payment. Give up your rights.
EXCLUDE YOURSELF Get no payment. This is the only option that allows you to ever bring a lawsuit against Defendants concerning the legal claims at issue in this case.
OBJECT Write to the Court about why you do not like the settlement.

DEADLINES

Submit Claim:  May 2, 2016               
Request Exclusion:  May 2, 2016
File Objection:  May 2, 2016
Court Hearing on Fairness of Settlement:  July 11, 2016