NEW YORK, May 10, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against UniTek Global Services, Inc. ("UniTek" or the "Company") (Nasdaq:UNTK) and certain of its officers. The class action, filed in United States District Court, Eastern District of Pennsylvania, and docketed under 13-CV-2580, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of UniTek between May 18, 2011 and April 12, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased UniTek securities during the Class Period, you have until June 18, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
UniTek is a provider of engineering, construction management and installation fulfillment services to companies specializing in the telecommunications, broadband cable, wireless, two-way radio, transportation, public safety and satellite industries in the United States and Canada.
The Complaint alleges that throughout the Class Period, Defendants fraudulently inflated UniTek's stock price during the Class Period by disseminating materially false and misleading statements, and failing to disclose material information, concerning the Company's true financial condition and business prospects. Specifically, throughout the Class Period, defendants disseminated false and misleading statements and failed to disclose that: (a) the Company's financial statements during the Class Period did not provide a fair presentation of the Company's finances and operations; (b) the Company's subsidiary, Pinnacle Wireless, engaged in fraudulent activities that resulted in improper revenue recognition; (c) the Company's internal accounting controls were deficient and permitted the improper recognition of revenue; and (d) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times. As a result of defendants' false statements, UniTek's stock traded at artificially inflated prices during the Class Period, reaching a Class Period high of $8.95 per share on May 27, 2011.
On April 12, 2013, UniTek issued a press release in which it made a number of disappointing announcements. First, the Company disclosed that it would be restating previously issued financial statements for the interim periods ended March 31, 2012, June 30, 2012 and September 29, 2012, as well as for the fiscal year ended December 31, 2011 and the interim period ended October 1, 2011. Additionally, the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2012 would be further delayed. Second, the company announced that it had terminated Ronald J. Lejman, its CFO and Treasurer, Michael Hayford, President of the Pinnacle Wireless Division, Kevin McClelland, Controller and Chief Accounting Officer, several other employees of Pinnacle Wireless, and an employee of the UniTek finance department. Notably, none of the terminated individuals would receive severance. Third, the Company disclosed that as a result of an ongoing internal investigation conducted by the Audit Committee of the Company's Board of Directors, with the assistance of outside independent counsel and a forensic accounting firm, it was determined that several employees of the Company's Pinnacle Wireless subsidiary engaged in fraudulent activities that resulted in improper revenue recognition. On this news, UniTek's shares declined $1.49 per share or approximately 50% to close at $1.52 on April 15, 2013 at $1.52, on unusually heavy trading volume.
On April 17, 2013, the Company announced that it had received a letter from NASDAQ stating that the Company is not in compliance with NASDAQ Listing Rule 5250(c)(1) because UniTek has not timely filed its Annual Report on Form 10-K for the year ended December 31, 2012. The Company would be given until May 1, 2013 to submit a plan to regain compliance.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP email@example.comSource:Pomerantz Grossman Hufford Dahlstrom & Gross LLP