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Enterprise Linux Today: Milberg Weiss Announces Class Action Suit Against VA Linux

Jan 11, 2001, 22:26 (15 Talkback[s])

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"The law firm of Milberg Weiss Bershad Hynes & Lerach 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'') (NASDAQ: LNUX - news) 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 viewed on Milberg Weiss' website...."

"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...."

Press Release