Today, Pomerantz Grossman Hufford Dahlstrom & Gross LLP announced that they have filed suit. I have not yet had a chance to check Pacer for the details, but, if this is correct, then this is the third suit.
The feeding frenzy is definitely on. I believe the company and the new CEO will be fine, but if there are any truth to the company's allegation of fraud by individuals in the Pinnacle division, I would not want to be whoever actually committed the fraud. Even if they eventually prevail in this civil matter, this is going to be painful to the extreme-- particularly if they have been terminated and have to go it alone. Also, of course, the company will have cause to file suit.
I finally got around to confirming the third suit.
This suit, too, constitutes not only an escalation in the matter for Unitek Global, but, also, an escalation in the battle to be lead plaintiff and lead counsel.
As you may recall, the first plaintiff had recorded one purchase of 500 shares at a per share price of $2.95, implying a loss of $850 (unrealized, perhaps.) The second plaintiff attested to having bought 1,202 shares at a price ranging widely, and, at $1.25, appears to have suffered a $2,867, or so, unrealized loss (the certification does not contain any sales,) handily beating the first plaintiff.
The new suit by a Robert Strougo contains a certification detailing two purchases at around $3.57 per share for a total volume of 1,000 shares. Assuming, again, a current per share price of $1.25, the unrealized loss appear to be $2,320, and, so, this loss is less than the second suit, but more than the first suit.
The certification also details that Mr. Strougo has sought or is seeking to be the representative party in another class action suit, this one being against The Phoenix Companies. Remarkably, Mr. Strougo's suit against Unitek involves no less than four named lawyers.
The three claims are a far cry away from the $50,000 target floor set in the ongoing pursuit of client, and, of course, all three tentative losses are remarkably out of line with the cost that it it going to take to make the suits go away and the potential damage that they inflict on the capitalization of the company.
P.S. As the per share price of UNTK has appreciated markedly over the last days, the plaintiffs (unrealized) losses are, of course, diminishing. If this continues, it may ultimately only be the second plaintiff, who I seem to recall had bought a few shares for a price in excess of $9 (yes, I don't know how this is possible, either, but that is what his certification says,) who is the only one left with a loss.