REDMOND, Wash.—Two pending lawsuits against Metawave Communications Corp. threaten the company’s ability to move forward as a going concern, according to Arthur Anderson L.L.P., Metawave’s independent auditor, and Metawave itself.
In Metawave’s annual report filed with the Securities and Exchange Commission, Andersen cites uncertainties due to lawsuits filed Nov. 6, 2001, and March 18, 2002.
In the March 18 class-action lawsuit, filed in the U.S. District Court for the Western District of Washington, the plaintiff alleges the company made false and misleading statements or omissions regarding its stock.
In the Nov. 6, 2001, class-action lawsuit, filed in the U.S. District Court for the Southern District of New York, the plaintiff alleges there was undisclosed compensation for Metawave’s underwriters in connection with the initial public offering on April 26, 2000.
