"Red Hat has been accused of violation of federal securities
laws in a class-action lawsuit that alleges investors were misled
about aspects of its initial public offering."
"The suit, filed in US District Court, Southern District of New
York yesterday, charges the Linux distributor, its senior
executives and securities houses of granting preferential share
allocations during Red Hat's August 1999 IPO."
"These privileges were obtained, it is alleged, in exchange for
"excessive commissions in transactions on other securities."