Shareholders Sue Optical Cable Over Securities Violations

BALA CYNWYD, Penn., Jan. 18 -- A pending class action charges Optical Cable Corp. and Robert Kopstein, the company's president, CEO and controlling shareholder, with issuing materially false and misleading statements concerning the company's financial condition.

The complaint was filed in the US District Court for the Western District of Virginia on behalf of all investors who purchased Optical Cable securities between July 31, 2000 and Oct. 8, 2001 (the "Class Period"). Specifically, the suit alleges that the defendants made numerous positive statements as to the business and financial health of Optical Cable prior to and during the Class Period yet failed to disclose to the investing public about Kopstein's use of his stock as collateral for margin loans with various brokerage accounts he maintained to speculate in technology stocks.