HARTFORD, Conn.—Law firm Schatz & Nobel filed a lawsuit in the U.S. District Court for the Northern District of California on behalf of purchasers of Metricom Inc. common stock.
The suit alleges that unbeknownst to the investing public, Metricom entered into three significant transactions with MCI WorldCom Inc. in June 1999, the result of which was, among other things, the creation of more than $300 million in liability for the company.
In connection with a secondary public offering of 5 million shares of Metricom common stock at $87 per share on Feb 7, 2000, only one of these transactions was partially disclosed.
The complaint also alleges that three members of Metricom’s senior management team made statements that caused Metricom’s stock to be artificially inflated—from $11.06 per share around June 1999, to as high as $109.50 on Jan. 28, 2000, just before the offering.
