HARTFORD, Conn., Aug. 9 /PRNewswire/ -- Shepherd, Finkelman, Miller &
Shah, LLC (http://www.classactioncounsel.com; e-mail:
jmiller@classactioncounsel.com), a law firm with offices in Connecticut,
Pennsylvania, New Jersey and Florida, announces that it has filed a lawsuit
seeking class action status in the United States District Court for the
District of Connecticut on behalf of all persons (the "Class") who purchased
the securities of Host America Corporation (Nasdaq: CAFE) ("Host America" or
the "Company") during the period between and including July 12, 2005 and July
22, 2005 (the "Class Period"). In addition to Host America, the Complaint
names certain individual officers, directors and shareholders of the Company,
as well as EnergyNSync, a "principally inactive" company which is owned by
Host America and certain of the other Defendants.
A copy of the Complaint may be obtained from the Court, or you can call
our offices toll free at either 866/540-5505 or 877/891-9880 to speak with an
attorney regarding this matter and we will send you a copy of the Complaint.
In addition, you can contact us at the email addresses provided above and
below and we will send you a copy of the Complaint and answer any questions
that you may have.
As the Complaint details, Host America provides food service management,
energy management conservation, and pre-employment background screening. The
Company operates four divisions: Host America Business Dining, Lindley Food
Service, SelectForce, and GlobalNet Energy Investors ("GlobalNet"). The
GlobalNet division markets, sells, and installs control panels and other
electrical energy saving devices for commercial and industrial users.
As the Complaint also explains, from May 12, 2004 to June 15, 2005, the
Company often announced agreements to install its LightMasterPlus product or
perform other energy saving services for various companies. The Company
claims that the LightMasterPlus "efficiently runs your lighting systems by
reducing kilowatt consumption yet maintaining visible light. It also allows
for fully automated dimming or accent lighting throughout your building."
On July 12, 2005, Host America filed a Form 8-K with the SEC and issued a
press release entitled, "Host America's Energy Division Announces Wal-Mart
Transaction Ten Store First-Phase for LightMasterPlus." Market reaction to
this announcement was enormous. Trading volume increased from 41,000 trades
on July 11, 2005 to 13,813,100 on July 12, 2005. Furthermore, the Company's
stock, which opened at $4.25 on July 12, 2005 prior to the announcement,
closed at $6.35, after reaching a high of $7.47. Over the next eight trading
days, volume reached a high of approximately 32,569,600 shares on July 18,
2005, and the Company's stock price reached a high of $16.88 on July 19, 2005.
The Complaint pleads that the above statements in the July 12, 2005 Form
8-K and press release were false and misleading because they misrepresented
the nature of the "Wal-Mart Transaction" as one whereby the Company had a firm
commitment by Wal-Mart to purchase the Company's LightMasterPlus for
installation in Wal-Mart stores. In fact, although not disclosed by Host
America, Wal-Mart had not become a customer of the Company in connection with
the purchasing of the LightMasterPlus product and the purported "Wal-Mart
Transaction" was limited to a test installation unrelated to any commitment by
Wal-Mart to install the LightMasterPlus in any of its facilities on a
permanent basis. Moreover, Wal-Mart had made no commitment to purchase or
install the LightMasterPlus outside of the test installation. As a result,
Defendants had no basis for stating that the test installation was a
"first-phase roll-out" or that "the next phase will involve a significant
number of stores." Moreover, Defendants lacked any basis for stating that the
Wal-Mart test installation was a "major event for our company." In fact, such
test installations in the past had resulted in no future customer relationship
and no actual purchases of the LightMasterPlus by the party solicited for the
test demonstration.
On July 22, 2005, trading of Host America securities was halted, pending
SEC review. In halting trading, the SEC cautioned brokers, dealers,
shareholders, and prospective purchasers that they should carefully consider
the foregoing information, along with all other currently available
information, and any information subsequently issued by the Company. At the
time trading was halted, Host America stock was priced at $13.92 per share --
down from $16.88 on July 19, 2005.
If you are purchased Host America securities between July 12, 2005 and
July 22, 2005 (inclusive), you may qualify to serve as lead plaintiff on
behalf of the Class. All motions for appointment as lead plaintiff must be
filed with the Court no later than October 7, 2005. Any member of the
proposed Class may move the Court to serve as lead plaintiff in this action
through counsel of his or her choice, or may remain an absent class member.
There are certain legal requirements to serve as lead plaintiff, which we
would be pleased to discuss with you. Please contact James E. Miller, Esquire
(866/540-5505; jmiller@classactioncounsel.com), or James C. Shah, Esquire
(877/891-9880; jshah@classactioncounsel.com), if you would like to discuss
this action or have any question regarding this notice or your rights.
Shepherd, Finkelman, Miller & Shah, LLC
(http://www.classactioncounsel.com) is a national law firm that represents
investors, including institutions and individuals, as well as consumers, in
class action and other complex litigation, and maintains offices in
Connecticut, Florida, New Jersey and Pennsylvania. The firm's attorneys have
appeared in matters on behalf of our clients throughout the United States and
have been appointed lead counsel in a number of class actions and corporate
governance matters.
SOURCE Shepherd, Finkelman, Miller & Shah, LLC
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Related links:
http://www.classactioncounsel.com
CONTACT:
James E. Miller, Esquire, +1-866-540-5505,
jmiller@classactioncounsel.com, or James C. Shah, Esquire,
+1-877-891-9880, jshah@classactioncounsel.com, both of Shepherd,
Finkelman, Miller & Shah, LLC
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