NEW YORK-Two days after MobileMedia Corp. announced it expected poor earnings for the third quarter, among other unfavorable news, a new group of its stockholders filed a class action lawsuit against the company and some of its officers and directors.
Investors who purchased common stock between Aug. 2 and Sept. 27 allege MobileMedia “issued false and misleading statements and failed to disclose” information, which would violate federal laws in the Securities and Exchange Act of 1934.
The lawsuit alleges that MobileMedia failed to mention problems associated with the integration of companies it recently acquired, violations of bank covenants, errors in the licensing process for some of MobileMedia’s one-way paging stations, and that the company would take a charge of $1 million related to the departure of three executives in July.
The lawsuit was filed Oct. 4 in U.S. District Court. The law firms of Stull, Stull & Brody of New York and Weiss & Yourman of New Jersey are lead counsel representing the shareholders. Attorney Jules Brody said the investors will seek the maximum in damages under securities laws and any damages under state laws if applicable.
MobileMedia is based in Ridgefield Park, N.J.
