Host America: To Be Delisted; Shareholders/Warrant Purchasers Retain Scott + Scott, LLC To Protect Investment From Alleged Fraud
Connecticut Company Target of Securities Fraud; Thousands Contact Connecticut-Based Firm
Colchester, Conn., Sept.12, 2005 – Scott + Scott, LLC (http://www.scott-scott.com )
which has been representing shareholders and warrant purchasers of Hamden, Connecticut’s Host America Corp. (Nasdaq: CAFÉ.PK) and (NasdaqSC: CAFEW.PK) in connection with its filed class action lawsuit against the Company for alleged violations of the Securities and Exchange Act of 1934, has had world-wide response to this action. For more information this case, see http://biz.yahoo.com/prnews/050831/new023.html?v=25. If you wish to discuss this action or have questions concerning your rights as a class member, you may contact for more information: Scott + Scott, LLC partner Neil Rothstein at email@example.com (800/332-2259, ext. 22 or cell 619/251-0887) or attorney Amy K. Saba at firstname.lastname@example.org (800/332-2259, ext. 26).
This is an unfortunate situation and Scott + Scott is taking a proactive stance to protect your interests. Here is some information you should know. Stock exchanges set forth requirements and rules for companies to trade on them. Once a company proves itself and gets listed on the exchange, be it through solid management or a good track record, the company must maintain certain standards. Failure to meet these standards can result in the delisting of the stock. Delisting can occur because of a stock trading at a very low level, fraud in management or other reasons. Host America could be placed on what is known as the NASDAQ SmallCAP or on the Pink Sheets. It could also go bankrupt. Scott + Scott will keep you posted.
On July 12, 2005, Host America informed the public that agreements had been made between itself and Wal-Mart for the installation of its LightMasterPlus fluorescent lighting system. Six weeks later, Host America confirmed Scott + Scott’s allegations, confessing, “[T]here is not, and never has been, a formal, written agreement with Wal-Mart concerning the proposed 10-store survey that was the subject of the July 12 press release nor is there any agreement for the installation of LightMasterPlus.” As a result of Host America’s July 12, 2005 misrepresentations, shareholders have lost millions of dollars, many of these shareholders being retirees. The Chief Executive officer is currently on an unpaid leave of absence.
Scott + Scott, LLC has been contacted by over a thousand disturbed shareholders worldwide. These shareholders and warrant holders have expressed distress over the delisting of the stock, the relisiting of it coupled with the lack of solid information and general distrust of the market itself. Scott + Scott, LLC is among the leading firms specializing in securities fraud litigation. In Connecticut where the firm is based, it is currently lead counsel in the Priceline.com securities litigation, it is actively working on the United Rentals securities litigation and it acted as lead counsel in the Annuity & Life Re Securities Litigation.