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Three more class-action lawsuits filed against VA Linux

Jan 15, 2001, 19:50 (25 Talkback[s])

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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.

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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.

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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.

Complete Story