"Federal authorities investigating ways securities firms
allocate certain initial public offerings of stock are focusing on
VA Linux Systems' offering last year, according to reports."
"Shares of the maker of software and computers using the Linux
operating system climbed eight times the offering price on its
first day of trading last December. The share sale was underwritten
by Credit Suisse First Boston, whose transactions have been an
early focus of the federal investigation, The Wall Street Journal
said, citing people familiar with the probe."
"The SEC and the U.S. attorney's office in Manhattan have
begun a joint investigation into whether some investors paid
unusually large commissions for coveted initial public stock
offerings, and whether the payments constitute illegal
kickbacks."
