Lawsuit Overview
Settlement Overview
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June 27, 2014 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.
February 21, 2014 - The court preliminarily approved the settlement.
January 17, 2014 - Parties filed a stipulation of settlement.
August 2, 2013 - The lead plaintiff and lead counsel were appointed.
July 12, 2013 - All cases were consolidated.
April 19, 2013 - An investor in shares of UniTek Global Services Inc (NASDAQ: UNTK) filed lawsuit in the U.S. District Court for the Eastern District of Pennsylvania against UniTek Global Services Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between May 18, 2011 through April 12, 2013.
According to the complaint the plaintiff alleges on behalf of investors who purchased or otherwise acquired UniTek Global Services Inc's common stock (NASDAQ: UNTK) during the period from May 18, 2011 through April 12, 2013, that UniTek Global Services Inc and certain of its officers violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements and omissions regarding UniTek Global Services Inc's financial condition and prospects as well as its internal controls.
UniTek Global Services Inc reported that its annual Total Revenue rose from $398.95 million in 2010 to $432.32 million in 2011 and its respective Net Loss declined from $30.58 million to $15.57 million. For the first three quarters in 2012 UniTek Global Services Inc reported a combined nine months Total Revenue of $434.99 million with a combined nine months Net Loss of $11.40 million.
Shares of UniTek Global Services Inc (NASDAQ: UNTK) grew from under $2.50 in August 2012 to $4.30 in September 2012.
Then on April 12, 2013, UniTek Global Services Inc announced selected estimated preliminary 2012 Financial Results. Among, other things, UniTek Global Services Inc also announced that it will restate its financial results for the interim periods ended March 31, 2012, June 30, 2012 and September 29, 2012, the fiscal year ended December 31, 2011 and the interim period ended October 1, 2011. UniTek Global Services Inc said that as a result of an ongoing internal investigation being conducted by the Audit Committee of UniTek Global Services Inc's Board of Directors, with the assistance of outside independent counsel and a forensic accounting firm, it was determined that several employees of UniTek Global Services Inc's Pinnacle Wireless subsidiary engaged in fraudulent activities that resulted in improper revenue recognition.
UniTek Global Services Inc also announced that its Chief Financial Officer and Treasurer, the Controller and Chief Accounting Officer, as well as the President of the Pinnacle Wireless division, and several other employees of Pinnacle Wireless and an employee of the UniTek Global Services Inc finance department have been terminated from their positions with UniTek Global Services Inc.
Shares of UniTek Global Services Inc (NASDAQ: UNTK) declined from slightly over $3 per share on April 12, 2013 to as low as $0.95 per share on April 15, 2013.
On April 19, 2013, UniTek Global Services Inc (NASDAQ: UNTK) shares closed at $1.35 per share.