Cauley Geller Bowman & Coates, LLP Announces Class
Action Lawsuit VA Linux Systems, Inc.
The Law Firm of Cauley Geller Bowman & Coates, LLP announced
today that it has filed a class action in the United States
District Court for the Southern District of New York on behalf of
all individuals and institutional investors who purchased the
securities of VA Linux Systems, Inc. (“Linux” or the “Company”)
(Nasdaq: LNUX – news) between December 9, 1999 and December 6,
2000, inclusive (the “Class Period”).
The complaint charges Linux and certain of its officers and
directors with violations of the federal securities laws. On
December 9, 1999, Linux completed an initial public offering of 4.4
million of its shares of common stock at an offering price of $30
per share (the “Linux IPO”). In connection therewith, Linux filed
a registration statement, which incorporated a prospectus (the
“Prospectus”), with the SEC. The complaint further alleges that
the Prospectus was materially false and misleading because it
failed to disclose, among other things, that: (i) Credit Suisse had
solicited and received excessive and undisclosed commissions from
certain investors in exchange for which Credit Suisse allocated to
those investors material portions of the restricted number of Linux
shares issued in connection with the Linux IPO; and (ii) Credit
Suisse had entered into agreements with customers whereby Credit
Suisse agreed to allocate Linux shares to those customers in the
Linux IPO in exchange for which the customers agreed to purchase
additional Linux shares in the aftermarket at pre-determined
prices. As alleged in the complaint, the SEC is investigating
underwriting practices in connection with several other initial
public offerings, including the Linux offering and the offerings of
Ariba Inc. and United Parcel Service, Inc.
Class Action Lawsuit Commenced Against VA Linux Systems
Inc. (LNUX) By Bernstein Liebhard & Lifshitz,
LLP
A securities class action lawsuit was commenced on behalf of all
persons who acquired VA Linux Systems, Inc. (NASDAQ: LNUX – news;
“Linux” or the “Company”) securities between December 9, 1999 and
December 6, 2000 (the “Class Period”). A copy of the complaint is
available from the Court or from Bernstein Liebhard & Lifshitz,
LLP.
The case is pending in the United States District Court for the
Southern District of New York. Named as defendants in the complaint
are Linux, Credit Suisse First Boston Corporation (“Credit
Suisse”), Larry M. Augustine (President and Chief Executive Officer
of Linux) and Todd B. Schull (Vice President and Chief Financial
Officer of Linux)
The complaint charges defendants with violations of the
Securities Act of 1933 and the Securities Exchange Act of 1934 for
issuing a Registration Statement and Prospectus (the”Prospectus”)
that contained materially false and misleading information and
failed to disclose material information. The Prospectus was issued
in connection with Linux’s initial public offering of 4.4 million
shares of common stock at $30.00 per share that was completed on
December 9, 1999.
The complaint alleges that the Prospectus was false and
misleading because it failed to disclose (i) Credit Suisse’s
agreement with certain investors to provide them with significant
amounts of restricted Linux shares in the IPO in exchange for
exorbitant and undisclosed commissions; and (ii) the agreement
between Credit Suisse and certain of its customers whereby Credit
Suisse would allocate shares in the IPO to those customers in
exchange for the customers’ agreement to purchase Linux shares in
the after-market at pre-determined prices.
The SEC is investigating is investigating underwriting practices
in connection with several; other initial public offerings,
including the offerings of Ariba Inc. and United Parcel Service,
Inc.
Plaintiff seeks to recover damages on behalf of all those who
purchased or otherwise acquired Linux securities during the Class
Period.
Seeger Weiss LLP Announces Class Action Suit Against VA
Linux Systems, Inc.
The following is an announcement by the law firm of Seeger Weiss
LLP:
The law firm of Seeger Weiss LLP announces that a class action
lawsuit was filed on January 11, 2001, on behalf of purchasers of
the securities of VA Linux Systems, Inc. (“Linux” or the
“Company”) between December 9, 1999 and December 6, 2000
inclusive. A copy of the complaint filed in this action is
available from the Court, or can be requested, free of charge, by
contacting Seeger Weiss LLP at the toll-free number below.
The action, numbered 01 CV 242 (MGC), is pending in the United
States District Court for the Southern District of New York,
located at 500 Pearl Street, New York, NY 10007, against defendants
Linux, Credit Suisse First Boston Corporation (“Credit Suisse”),
Larry M. Augustin and Todd B. Schull. The Honorable Miriam G.
Cedarbaum is the Judge presiding over the case.
The complaint alleges violations of Sections 11, 12(a)(2) and 15
of the Securities Act of 1933 and Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On
December 9, 1999, Linux completed an initial public offering of 4.4
million of its shares of common stock at an offering price of $30
per share (the “Linux IPO”). In connection therewith, Linux filed
a registration statement, which incorporated a prospectus (the
“Prospectus”), with the SEC. The complaint further alleges that
the Prospectus was materially false and misleading because it
failed to disclose, among other things, that: (i) Credit Suisse had
solicited and received excessive and undisclosed commissions from
certain investors in exchange for which Credit Suisse allocated to
those investors material portions of the restricted number of Linux
shares issued in connection with the Linux IPO; and (ii) Credit
Suisse had entered into agreements with customers whereby Credit
Suisse agreed to allocate Linux shares to those customers in the
Linux IPO in exchange for which the customers agreed to purchase
additional Linux shares in the aftermarket at pre-determined
prices. As alleged in the complaint, the SEC is investigating
underwriting practices in connection with several other initial
public offerings, including the Linux IPO and the offerings of
Ariba Inc. and United Parcel Service, Inc.