Published:
KGS Announces Filing of Shareholder Securities Fraud Class Action Lawsuit Against U.S. Auto Parts Network, Inc. -- (NASDAQ: PRTS)
Kahn Gauthier Swick, LLC ("KGS") announces
that shareholders of U.S. Auto Parts Network, Inc. ("U.S. Auto Parts")
(NASDAQ: PRTS) who purchased shares of the Company in connection with its
February 8, 2007 Initial Public Offering ("IPO") or who purchased shares
thereafter in the open market, may now move for appointment as Lead
Plaintiff in a securities class action lawsuit currently pending in the
United States District Court for the Central District of California. No
class has yet been certified in this action.
UNTIL A CLASS IS CERTIFIED, YOU ARE NOT PERSONALLY REPRESENTED BY COUNSEL
UNLESS YOU RETAIN AN ATTORNEY.
If you purchased shares of U.S. Auto Parts in connection with the IPO or if
you purchased shares thereafter in the open market you are urged to contact
Lewis Kahn, Managing Partner, KGS, toll free 1-866-467-1400, ext. 106, via
cell phone at 504-301-7900, or by email at lewis.kahn@kgscounsel.com to
learn about your legal rights and how this action may benefit you. For
further information on KGS, please visit www.kgscounsel.com.
U.S. Auto Parts, its Underwriters Thomas Weisel Partners, Piper Jaffray &
Co., JMP Securities and RBC Capital Markets Corp., and each member of its
Board of Directors are charged with including false and misleading
statements in the registration statement and proxy-prospectus issued in
connection with the IPO in direct violation of the Securities Act of 1933.
Specifically, defendants each failed to reveal that, at that time of the
IPO, the integration of PartsBin was not proceeding according to plan and
that sales were being adversely affected as a result thereof.
It was only on March 20, 2007, after the close of trading -- and after
defendants liquidated over $40 million of their personally held shares in
the IPO and on the open market -- that U.S. Auto Parts revealed the truth
about the Company, including that the problems that existed at the time of
the IPO would result in extremely disappointing results for the fourth
quarter 2006.
On this news, U.S. Auto Parts' stock price collapsed in one day from $11.07
per share, the prior day, to close at $6.49 per share on March 21, 2007 --
a single-day decline of almost 50%.
If you wish to serve as lead plaintiff in this case, you must move the
Court no later than May 28, 2007. Any member of the purported class may
move the Court to serve as lead plaintiff through counsel of their choice,
or may choose to do nothing and remain an absent class member. If you would
like to discuss your legal rights, you may e-mail or call KGS, without
obligation or cost to you. You may contact Managing Partner Lewis Kahn of
KGS direct, toll free 1-866-467-1400, ext., 106, or by email at
lewis.kahn@kgscounsel.com. KGS focuses its practice on securities fraud
litigation, and the firm's lawyers have significant experience working on
securities fraud cases that have resulted in significant recoveries for
shareholders. For more information on KGS, please visit www.kgscounsel.com.
SPECIAL NOTICE: Multiple law firms often file the same class action.
However, courts will generally appoint only one of these firms to prosecute
a securities fraud action on behalf of the shareholders based upon the
amount of losses its "lead plaintiffs" have suffered. Accordingly, while
KGS urges you to sign up with the firm, KGS also encourages you to
carefully evaluate any other firm that may be competing with KGS to
prosecute the U.S. Auto Parts class action, should you be considering
another firm. Critical components of a law firm's ability to successfully
prosecute this action and obtain a strong recovery for you include the
resources it will dedicate to prosecution of the case, including the number
of lawyers the firm has available for the U.S. Auto Parts action, AND
especially the quality of the firm's work. Interested shareholders are
encouraged to call for consultation and to request more information about
KGS.
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