Pixelon Inc. Securities Litigation

This litigation (the "Action") is pending in the United States District Court for the Western District of Kentucky (the "Court"). The Action was brought pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), as well as Rule 10b-5 promulgated thereunder, against: (i) former officers and directors of Pixelon, Inc. ("Pixelon" or the "Company"), to whit, Adam Michael Fenne (a.k.a. David Stanley), Paul C. Ward, Jr., Stephen Curtis, and Bartley M. Moore; (ii) Advanced Equities, Inc.; (iii) certain officers and/or board members of Advanced Equities, Inc., to whit, Lee Wiskowski, Keith Daubenspeck, and Dwight Badger; (iv) Kring & Brown, LLP; and (v) Shefsky & Froelich Ltd. (collectively, "Defendants"). Pixelon has filed for bankruptcy and is not a party to this Action.

This Action was commenced by the filing of a Class Action Complaint on or about June 30, 2000, as a securities class action on behalf of persons who purchased the securities or held stock of Pixelon against certain Pixelon directors and other Defendants. On December 21, 2001, the Court consolidated as part of the Action a related lawsuit styled Wenk, et al. v. Advanced Equities, Inc., et al., Civil Action No. 3:01-CV-544(H) (W.D. Ky.), which had been originally filed in the United States District Court for the Central District of California and subsequently was transferred to this Court. On July 3, 2002, the Court appointed George M. Lawson, Maria Swift, William C. Dugdale, and H. Grant Hathaway as lead plaintiffs for the Class (defined below). On the same date, the Court also certified as Lead Counsel for the Class the law firms of Berger & Montague, P.C., Sales Tillman & Wallbaum, and J. Bruce Miller Law Group (collectively, "Plaintiffs' Settlement Counsel").

Plaintiffs filed a Consolidated Amended Complaint (the "Complaint") on July 17, 2002. The Complaint alleges that investors who purchased Series A Preferred Shares of Pixelon in a private placement were defrauded by certain Pixelon Directors and other Defendants. The primary business of Pixelon, an internet company, was to develop and market an internet broadcasting network. In 2000, Pixelon filed for bankruptcy. In the Complaint, the Plaintiffs allege, inter alia, that they were defrauded in connection with their purchases of Pixelon stock because: (1) the value of the Company allegedly was overstated in the Private Placement Memorandum; (2) the Defendants allegedly knew or should have known that the background of Defendant Adam Michael Fenne (a/k/a David Stanley) ("Fenne"), the President and founder of Pixelon, was false and incomplete; (3) the Private Placement Memorandum allegedly failed to make adequate disclosures regarding the ownership and development of Pixelon's technology; and (4) Fenne's background and the reasons for his termination from Pixelon in November 1999 were not explained to the investors.

Read More

Contact us for more information