|
Investigative
articles at the Wall Street Journal are often a great service to
investors and can often have a dramatic effect on a stock’s
price. A recent
example is Salt Lake City-based Usana Health Sciences (USNA) whose
major product is a multivitamin.
On March 15, 2007, the Journal published an article that
reported a recent analysis of the Company indicates that it may be
a ponzi scheme. Specifically,
the article suggested that the Company's sales model is
unsustainable because it requires the constant recruitment of new
associates. Eventually the Company will run out of
distributors, who will face long odds selling products or
recruiting new disciples. Subsequently,
the Company disclosed that the SEC is conducting an informal
inquiry of the Company.
As noted at the outset, these disclosures have had a significant
effect on Usana stock. On
March 15, 2007, the Company’s stock declined from $58.77 per
share at the close of trading on March 14, 2007, to close at
$49.85 per share, a decline of approximately 15%, on heavier than
usual volume. Investors who purchased Usana between November
7, 2006 and March 14, 2007 may be affected.
Monster Worldwide, Inc. (NASDAQ:
MNST) and Backdated Options
Monster
Worldwide (NASDAQ: MNST) is one of the most appalling examples for
the backdated options scandal and a case has recently been filed
against the Company on behalf of affected shareholders.
As you may recall, on June 12, the same day that the
Company announced that it had received a subpoena from U.S.
Attorney for the Southern District of New York related to its
stock option practices, the Wall Street Journal did a story on
Monster. The article
concluded that there only was a one in nine million chance that
the grant dates of the options The Journal examined were selected
at random. Not surprisingly, this disclosure resulted in a significant
drop in the Company’s stock.
Investors who purchased Monster from May 6, 2005 and June
9, 2006 are affected
Openwave
Systems, Inc. (NASDAQ: OPWV) and Backdated Options
The
decline in the stock price of Openwave Systems, Inc. (NASDAQ: OPWV)
during 2006 illustrates the damage done by the backdated options
scandal.
Before
an announcement on May 22, 2006 that the SEC was investigating the
Company’s stock option grants and practices, its stock traded at
over $15 per share. After
the Company disclosed in early October 2006 that it would restate
its financials for the last five years and then disclosed in late
October 2006 that its was also reviewing the tax implications
triggered by the mandatory accounting adjustments, its stock
traded at under $9 per share. If the Company had adequate internal and financial controls
in place this would not have happened.
Instead, it appears that the Company intentionally
concealed the true grant dates of the stock options.
Investors
who purchased between September 30, 2002 and October 26, 2006 are
affected
RadioShack
(NYSE: RSH) and Insider Selling
It
is alleged that Company issued false statements about its
inventory wireless business, new store format and its future
prospects that artificially inflated the Company/s stock price.
It is also alleged that certain individuals took advantage
of the Company’s inflated stock price and sold over a half
million shares of RadioShack stock.
Investors
who purchased RadioShack between January 14, 2003 and June 7, 2006
are affected.
We
are investigating the situations discussed above and if you are
an affected investor in any of these cases or the other cases listed
below under investigation, you may wish to contact us at info@securitiesleuth.com
or 877 511 4717. More information re these cases is
available at typepad.securitiessleuth.com or at
www.securitiessleuth.com
Other cases under investigation are:
Accredited Home Lenders Holding Co. (NASDAQ: LEND).
Active Power, Inc. (NASDAQ: ACPW)
Coast
Financial Holdings, Inc. (NASDAQ: CFHI)
CTS
Corporation (NYSE: CTS)
Gulf
Island Fabrication, Inc. (NASDAQ: GIFI)
LECG
Corporation NASDAQ: (XPRT)
Nutrisystem
(NNASDAQ: NTRI)
Shuffle
Master, Inc. (NASDAQ: SHFL)
Wells
Real Estate Investment Trust, Inc. NASDAQ: WLRE)
WorldSpace,
Inc. NASDAQ: WRSP)
Now
with respect to securities cases that have recently settled. If
you are an affected investor – you purchased any of these
stocks during the relevant class period, you may wish to
contact the claims administrator to obtain additional
information. Remember, if you don’t submit your claim form,
you won’t receive your share of any settlement.
Catalina Marketing Corp. (POS)
Class
Period: October 14, 1999 to August 25, 2003
Claim
Deadline: May 21, 2007
Claims
Administrator: Gilardi
Spear
& Jackson, Inc. (SJCK)
Class
Period: February 1, 2002 to April 1, 2003
Claims
Deadline: June 26, 2007
Claims
Administrator: Garden City
Information
regarding other recent settled cases, including the cases listed
below can be found at www.securitiessleuth.com.
Winstar
Communications (WCII)
Ibis
Technology Corp. (IBIS)
Astropower,
Inc. (APWR)
Again
you should contact the claims administrator (rather than us).
However, if you are an affected investor in any of the
companies under investigation, you many wish to contact us so
that you can consider your options.
Likewise, if you happen to be aware of corporate restatements or
other financial fraud -- especially if you're a victim -- you're
encouraged to contribute to the Sleuth by giving your own
tip-offs at www.typepad.securitiessleuth.com or by e-mailing info@securitiessleuth.com.
You can also call Mark McNair at 877-511-4717. If you have a
friend or colleague you think would benefit from The Sleuth,
please pass along this issue and ask them to sign up at www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair |
