12 November 1998: SpecTran Corp. of the US said that it would contest a class-action complaint that alleges the company and three officers violated securities laws by misrepresenting the company“s fi…
12 November 1998: SpecTran Corp. of the US said that it would contest a class-action complaint that alleges the company and three officers violated securities laws by misrepresenting the company“s financial condition and results in 1998. The complaint was filed in the United States District Court in Boston on 2 October by shareholders who bought the stock on the open market from 25 February to 17 July. The developer of glass optical fibres and value-added fibre optic products said in a statement that it believes that the action is totally without merit, believes it has highly meritorious defences and it intends to defend itself vigorously. In July, the company said it was in violation of some debt covenants due to its second quarter net loss of US$ 1.4 million, or US$ 0.20 per diluted share, compared to net income of US$ 1.3 million, or US$ 0.18 per share in the year-ago period (see GlassOnline report of 6 August 1998).