Shareholder Class Action Filed Against KVH Industries, Inc. by the Law Firm of Schiffrin & Barroway, LLP
23 July 2004 - 12:25AM
PR Newswire (US)
Shareholder Class Action Filed Against KVH Industries, Inc. by the
Law Firm of Schiffrin & Barroway, LLP BALA CYNWYD, Pa., July 22
/PRNewswire/ -- The following statement was issued today by the law
firm of Schiffrin & Barroway, LLP: Notice is hereby given that
a class action lawsuit was filed in the District of Rhode Island on
behalf of purchasers of KVH Industries, Inc. ("KVH" or the
"Company") (NASDAQ:KVHI) publicly traded securities during the
period between January 6, 2004 and July 2, 2004 (the "Class
Period"). If you wish to discuss this action or have any questions
concerning this notice or your rights or interests with respect to
these matters, please contact Schiffrin & Barroway, LLP (Marc
A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at
1-888-299-7706 or 1-610-667-7706, or via e-mail at . The complaint
charges KVH and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. KVH describes
itself as a designer, manufacturer and marketer of mobile satellite
communications products for the automotive/recreational
vehicle/marine markets and navigation, guidance and stabilization
products for defense markets. The complaint alleges that,
throughout the Class Period, defendants issued materially false and
misleading statements regarding KVH's increasing financial results
and the strong demand for its newly developed TracVision A5 and G8
satellite TV systems (the "TracVision systems"). As alleged in the
complaint, these statements were materially false and misleading
because they failed to disclose, among other things: (a) that
defendants had "stuffed" the retail channels with overpriced
TracVision systems; (b) that the Company's revenues were not
growing by millions of dollars per quarter and the purported growth
trends in the Company's revenues could not be sustained; and (c)
that KVH had not realized any material cost reduction in the
manufacture of its TracVision systems and would be forced to
write-down its inventory of manufactured goods by millions of
dollars. The complaint further alleges that defendants failed to
disclose these adverse facts in order to complete a public offering
of KVH common stock, raising more than $51.5 million in much needed
capital. On or about July 6, 2004, before the market opened for
trading, KVH stunned the investing public by announcing that it was
slashing the retail price of its TracVision systems by more than
34% and taking a multi-million dollar write down of vendor purchase
commitments and on-hand inventories to reflect the true value of
KVH's TracVision systems sales. In pre-opening market trading, KVH
common stock declined more than 19%, to open at $9.51 per share on
July 6, 2004, a 49% decline from the public offering price just 4
months prior. Plaintiff seeks to recover damages on behalf of class
members and is represented by the law firm of Schiffrin &
Barroway, which prosecutes class actions in both state and federal
courts throughout the country. Schiffrin & Barroway is a
driving force behind corporate governance reform, and has recovered
in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about
Schiffrin & Barroway, or to sign up to participate in this
action online, please visit http://www.sbclasslaw.com/. If you are
a member of the class described above, you may, not later than
September 20, 2004, move the Court to serve as lead plaintiff of
the class, if you so choose. A lead plaintiff is a representative
party that acts on behalf of other class members in directing the
litigation. In order to be appointed lead plaintiff, the Court must
determine that the class member's claim is typical of the claims of
other class members, and that the class member will adequately
represent the class. Under certain circumstances, one or more class
members may together serve as "lead plaintiff." Your ability to
share in any recovery is not, however, affected by the decision
whether or not to serve as a lead plaintiff. You may retain
Schiffrin & Barroway, or other counsel of your choice, to serve
as your counsel in this action. CONTACT: Schiffrin & Barroway,
LLP Marc A. Topaz, Esq. Stuart L. Berman, Esq. Three Bala Plaza
East, Suite 400 Bala Cynwyd, PA 19004 1-888-299-7706 (toll free) or
1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin &
Barroway, LLP CONTACT: Marc A. Topaz, Esq. or Stuart L. Berman,
Esq., Schiffrin & Barroway, LLP, +1-888-299-7706 or
+1-610-667-7706, Web site: http://www.sbclasslaw.com/
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