Straight Path investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Straight Path is a communications asset company. The company’s business is focused on two subsidiaries: (1) the wholly owned Straight Path Spectrum, Inc., which holds, leases, and markets fixed wireless spectrums through its wholly owned subsidiary Straight Path Spectrum, LLC; and (2) the 84% owned Straight Path IP Group, Inc. Straight Path claims to hold 828 licenses of 39 gigahertz (“GHz”) band and 133 licenses in the multipoint distribution service band.
The complaint alleges that throughout the Class Period, the defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) the commercialization prospect for Straight Path’s spectrum assets is less than touted; (2) Straight Path’s spectrum licenses were improperly obtained; and (3) as a result, Straight Path’s public statements were materially false and misleading and/or lacked a reasonable basis at all relevant times.
The Class Period commences on October 29, 2013, when Straight Path filed its annual report on Form 10-K for the fiscal year ending July 31, 2013.
On October 29, 2015, Kerrisdale Capital published a report entitled “Straight Path Communications Inc. (STRP) The Next Generation of Overblown Spectrum Hype” (the “Kerrisdale Report”). The Kerrisdale Report questioned the commercial viability of Straight Path’s spectrum licenses. Following this news, the company’s shares fell $18.23 per share, or over 38%, to close at $29.35 per share on October 29, 2015.
Then, on November 5, 2015, Sinclair Upton Research published a report entitled “Straight Path Communications Inc. (STRP) How to commit fraud against the FCC and get away with it (until now)” (the “Sinclair Report”). The Sinclair Report asserted that the company’s licenses for the 39 GHz wireless sites were renewed only after the company made fraudulent representations to the FCC. Following this news, the company’s shares fell $13.70 per share, or almost 52%, to close at $12.81 per share on November 5, 2015.
If you are a member of the class described above, you may no later than January 12, 2016, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706