Virgin Mobile USA faces class-action lawsuit
Class Action News
[##_1L|1307033860.jpg|width="130" height="90" alt=""|_##]Shareholders who lost money after investing in Virgin Mobile USA have filed a class-action lawsuit against the mobile phone company. Virgin Mobile USA began as a 50:50 joint venture between Sprint Nextel and Branson's Virgin Group
Law firm Kahn Gauthier Swick filed the suit on behalf of investors and is urging those who lost more than $100,000 to inquire about applying for lead plaintiff status in the case.
Virgin Mobile USA began as a 50:50 joint venture between Sprint Nextel and Sir Richard Branson's Virgin Group, which floated the company last month.
The shareholders suing the business invested in Virgin Mobile USA's initial public offering, or later bought its stock in the open market.
Last month, the pay-as-you-go service provider sold 27.5m shares for $15 each, at the low end of expectations. The shares rose as high as $16.63 a share on the first day on the open market, but have since steadily declined, amid a broader market sell-off.
advertisementThey were trading down 27c at just $7.25 yesterday afternoon, having fallen around 55pc from their peak.
The offering raised $413m. The company had said it would use the proceeds from the stock sale to repay debt and to buy out 16.7pc of Sprint Nextel's interest.
A spokesman for the company said: ''The lawsuit is completely without merit and we will defend it vigorously."
The company is a separate entity from Virgin Mobile in the UK, which was sold to cable giant NTL to form Virgin Media, in which Sir Richard is the largest shareholder - as he is is Virgin Mobile USA.
Related listings
-
JDSU Wins Class Action Jury Verdict
Class Action News 11/27/2007JDSU today announced that a jury has ruled in favor of the Company on all claims in a securities class action lawsuit filed by Connecticut Retirement Plans and Trust Funds against the Company in the United States District Court for the Northern Distr...
-
The Rosen Law Firm Files Securities Class Action
Class Action News 11/17/2007The Rosen Law Firm today announced that it has filed a class action lawsuit on behalf of all purchasers of Industrial Enterprises of America, Inc. ("IEAM" or the "Company") (NASDAQ: IEAM) (formerly IEAM.OB) stock during the period from November 14, 2...
-
Milberg Weiss Investigates 401(k) Savings Plan
Class Action News 11/14/2007The law firm of Milberg Weiss LLP is investigating possible illegal conduct relating to The First American Corporation 401(k) Savings Plan. Specifically, Milberg Weiss is investigating whether certain fiduciaries of the plan may have violated the Emp...
Grounds for Divorce in Ohio - Sylkatis Law, LLC
A divorce in Ohio is filed when there is typically “fault” by one of the parties and party not at “fault” seeks to end the marriage. A court in Ohio may grant a divorce for the following reasons:
• Willful absence of the adverse party for one year
• Adultery
• Extreme cruelty
• Fraudulent contract
• Any gross neglect of duty
• Habitual drunkenness
• Imprisonment in a correctional institution at the time of filing the complaint
• Procurement of a divorce outside this state by the other party
Additionally, there are two “no-fault” basis for which a court may grant a divorce:
• When the parties have, without interruption for one year, lived separate and apart without cohabitation
• Incompatibility, unless denied by either party
However, whether or not the the court grants the divorce for “fault” or not, in Ohio the party not at “fault” will not get a bigger slice of the marital property.