NEW YORK-Glenayre Technologies Inc. acknowledged Feb. 26 that a second shareholder lawsuit has been filed against the company and certain of its current and former board members.
The lawsuit, filed Feb. 20 in the U.S. District Court for the Southern District of New York, “alleges that certain current and former board members breached their duties to Glenayre and thereby subjected Glenayre to the previously filed shareholders’ lawsuit,” the company said.
In November, a class action lawsuit was filed in the same court charging that Glenayre and its executive officers and directors misrepresented the finances of the company by claiming there was a “firm backlog” of product orders, according to a statement by the law firms of Milberg, Weiss, Bershad, Hynes & Lerach, L.L.P.; Savett, Frutkin, Podel & Ryan PC; Bernstein, Liebhard & Lifshitz; and Bernard M. Gross. The class includes people who purchased Glenayre stock between Jan. 4, 1996, and Sept. 13, 1996.
“As I stated last November, we believe that the allegations of the so-called shareholders’ lawsuit are totally without merit,” said Gary Smith, president and chief executive officer of Glenayre, which is headquartered in Charlotte, N.C. “The new lawsuit is basically a repackaging of the same allegations, and we believe that it is also meritless. Both suits will be defended vigorously.”
Glenayre specializes in cellular, paging , point-to-point and mobile data products and systems.