| Company: | NexCen Brands, Inc. |
| Ticker Symbol: | NASD: NEXC |
| Class Period: | May 10, 2007 to May 19, 2008 |
| Date Filed: | May-29-08 |
| Lead Plaintiff Deadline: | July-28-08 |
| Court: | Southern District, NY |
| Allegations: |
A class action lawsuit on behalf of purchasers of the common stock of NexCen Brands, Inc. ("NexCen" or the "Company") (Nasdaq:NEXC) between May 10, 2007 and May 19, 2008 ("Class Period"). The complaint was filed in the United States District Court for the Southern District of New York and charges NexCen and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
If you are a purchaser of NexCen common stock during the Class Period, you have the legal right to petition the court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made on or before July 28, 2008.
The class action complaint alleges that the defendants misrepresented and failed to disclose that: NexCen was able to finance a portion of its Great American Cookies acquisition by agreeing to an accelerated-redemption feature, which would force the Company to pay back half of its borrowing by a certain date; the Company was unable to comply with this accelerated-redemption feature, which would reduce the amount of cash available to the Company; the Company had no reasonable basis for its earnings guidance for fiscal 2008; and as a result of the foregoing, the Company's ability to continue as a going concern was in serious doubt.
On May 19, 2008, the Company announced that it expected to amend its Form 10-K annual report for the year ended December 31, 2007 and that its prior financial guidance for 2008 was "no longer applicable." In response, shares of the Company's stock fell more than 75%, on heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you are a purchaser of NexCen common stock during the Class Period, you have the legal right to petition the court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made on or before July 28, 2008.
The class action complaint alleges that the defendants misrepresented and failed to disclose that: NexCen was able to finance a portion of its Great American Cookies acquisition by agreeing to an accelerated-redemption feature, which would force the Company to pay back half of its borrowing by a certain date; the Company was unable to comply with this accelerated-redemption feature, which would reduce the amount of cash available to the Company; the Company had no reasonable basis for its earnings guidance for fiscal 2008; and as a result of the foregoing, the Company's ability to continue as a going concern was in serious doubt.
On May 19, 2008, the Company announced that it expected to amend its Form 10-K annual report for the year ended December 31, 2007 and that its prior financial guidance for 2008 was "no longer applicable." In response, shares of the Company's stock fell more than 75%, on heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
