The complaint charges that U.S. Wireless Corp. and its then-CEO Oliver Hilsenrath violated federal securities laws, by failing to reveal that Hilsenrath and the Company's General Counsel made cash payments and issued stock and stock options to outside vendors affiliated with Hilsenrath. These transactions were never disclosed to the investing public.
On May 26, 2001, the Company disclosed that an investigation by the Audit Committee of the Board of Directors had uncovered various irregularities relating to these transactions. The Company further indicated that these irregularities may have a material effect on the Company's historical financial results and may require restatement of previously issued financial statements. It was further announced, that as a result of the investigation, Hilsenrath was terminated for casue by the Board of Directors.
On May 29, 2001, Nasdaq halted trading on U.S. Wireless shares at $2.91 - 94% lower than the Class Period high of $52.50.
The Complaint alleges that as a result of the defendants' conduct, plaintiff and other members of the class suffered damages.
Plaintiff seeks to recover damages on behalf of all those who purchased US Wireless common stock during the Class Period, excluding defendants and their affiliates.