Wednesday, August 04, 2004

Milberg Weiss + KVH

Copy of Federal Class Action July 27, 2004
Press Release
Counsel for KVH

The complaint alleges that during the Class Period defendants knowingly or recklessly made materially false and misleading statements that artificially inflated the price of KVH securities. Specifically, the complaint alleges that, at the commencement of the Class Period, defendants announced that they had begun to market the TracVision A5 Antenna (the “TracVision A5” or “A5”) as an affordable device that would allow consumers to watch television in their minivans, SUVs and other passenger vehicles. Between October 1, 2003 and February 13, 2004, defendants hyped the purported success of the Company’s TracVision A5 product launch and claimed that the product would drive the Company’s future growth and profitability. They blamed the Company’s lackluster performance on other parts of the business and thereby propped up the price of KVH stock until February 13, 2004 when, in an oversubscribed secondary offering, the Company sold 2.75 million KVH shares for $18.75 a share for total proceeds of $51.5 million, thereby increasing its market capitalization by 23%, from $222 million to $273.5 million.


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