Lasky & Rifkind, Ltd., a law firm with offices in New York and Chicago, announces that a lawsuit has been filed in the United States District Court for the District of Arizona, on behalf of persons who purchased or otherwise acquired publicly traded securities of Mobility Electronics Inc. (“Mobility” or the “Company”) (NASDAQ:MOBE) between September 2, 2003 and January 5, 2004, inclusive, (the “Class Period”). The lawsuit was filed against Mobility and Charles R. Mollo and Joan W. Brubacher.
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at [email protected] and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than April 12, 2004 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. However, if you choose to remain an absent class member, unless and until a class is certified, you are not represented by counsel.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that throughout the Class Period Defendants repeatedly represented that it expected Mobility to earn $15 million in revenues in the fourth quarter of 2003, which was attributable to Fellowes, Inc. (“Fellowes”) whereby Fellowes would globally market and distribute a line of Fellowes branded products from Mobility, through its wide distribution network, encompassing more than 30,000 retail stores. In truth however, unknown to investors, Fellowes was not meeting its sales forecasts and accordingly Mobility was not generating the revenues and earnings it had anticipated form the Fellowes Agreement. Prior to disclosing these adverse facts to the investing public, Mobility completed a $15 million private placement, and purchased assets from InVision using its artificially inflated stock, and insiders sold more than $6 million of their personally owned shares.
On January 5, 2004, Mobility announced that it expected revenue for the fourth quarter of 2003 to be approximately $1.0 million to $1.3 million, less than the Company’s previous guidance of approximately $5 million.
If you bought Mobility securities between September 2, 2003 and January 5, 2004, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (800) 495-1868 to speak with an advisor.