Kahn Gauthier Swick has filed a class action lawsuit against Virgin Mobile (NYSE: VM) USA on behalf of shareholders, apparently because the stock has fallen 55 percent from its peak of $16.63 on the first day it was traded. “Kahn Gauthier Swick ... is urging investors who lost more than $100,000, to inquire about applying for lead plaintiff status in the case” reports Reuters. The reasons given appear to be that Virgin misled how well the company was doing in the information given for its IPO. “The wireless service provider’s shares fell $1.54, or 14.4 percent, to $9.19 Friday, after Virgin Mobile announced that its third quarter loss for the period ending September 30, 2007 widened to $7.3 million. This news, and subsequent share decline, comes only one month after the Company’s October, 2007 initial public offering raised over $350 million, well after the end of the third quarter in which Virgin now reports a larger loss” it states in this release. RTT News reports that “the lawsuit states that the defendants failed to conduct an adequate investigation into the company prior to the IPO. They also failed to reveal, at the time of the IPO, that Virgin Mobile was not performing well. As, the company’s third quarter results reflected growing losses as expenses rose and business slowed, indicating that the company would be forced to revise downward its near-term forward financial and operational guidance”.

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