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

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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….”

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Release

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