theStreet.com: Shareholders Sue VA Linux As IPO Practices Are Called Into QuestionMar 26, 2001, 20:42 (6 Talkback[s])
(Other stories by Robert Kowalski)
"The piling on is under way for VA Linux, the software company that became a symbol of the initial public offering craze a year ago. It's now threatened with becoming a poster child for everything that went wrong with late 1990s IPOs."
"Since late January, at least 18 federal lawsuits have been filed against VA Linux, claiming the Fremont, Calif.-based company conspired with its investment bankers in a kickback scheme to drive up the price of its shares in what was the largest percentage gain in at least a decade for a stock in its first day of trading. Those suits, which seek certification as class actions, also name the lead underwriter of the VA Linux IPO, Credit Suisse First Boston, as a defendant...."
"And now, VA Linux has been roped into a larger investigation by the Securities and Exchange Commission of the practices of investment banking firms in a number of initial public offerings, centering on how the banks allocated the prized IPO shares and what they may have demanded from the recipients of the shares in return."