NEW YORK-AARO Broadband Wireless Communications Inc., which moved to Oklahoma City from Springdale, Ark., in May, must pay $530,000 in judgements related to securities fraud charges brought against it by three shareholders, John Dodge, the plaintiffs’ attorney said June 29.
The judgements stem from three cases heard in state and federal courts in Arkansas earlier this month, said Dodge, a Rogers, Ark., lawyer who represents AARO Broadband shareholders Jim Steele, Mel Robinson and Paul Bryan.
The court judgements cite AARO for “concealing materially adverse information in its SEC (Securities and Exchange Commission) reports … during the past year, preparing and filing false or misleading financial statements and violating anti-fraud provisions of federal securities regulations in connection with its operations in the last 13 months,” Dodge said.
AARO, whose stock trades over the counter, “provides wireless connectivity up to 100 MBPS (megabits per second),” the company said in a June 26 press release announcing that its chief technical officer, Mike Erhart, has become president and chief operating officer. Ron Baker, formerly president, will remain as chief executive officer.
“The judgement holders have reached an accord with other large AARO shareholders and have developed a plan to assure continuity of company operations. … An institutional investor has agreed to a … plan that calls for it to infuse up to $750,000 into AARO over a six-month period … conditioned upon a change of control while AARO restructures,” Dodge said.
“A planned involuntary bankruptcy on AARO has been delayed to see if a restructuring plan can be developed. We are prepared to file it, however, if we see company assets being converted, wasted or jeopardized by anyone.”
