NEW YORK, Jan. 19 /PRNewswire/ -- The following is an announcement by law
firm Wechsler Harwood Halebian & Feffer LLP. (http://www.whhf.com). Wechsler
Harwood Halebian & Feffer LLP has been engaged to commence a class action
lawsuit in the United States District Court for the Southern District of New
York on behalf of all persons or entities who purchased or otherwise acquired
VA Linux Systems, Inc. ("VA Linux" or the "Company") common stock on December
9, 1999, in the VA Linux initial public offering ("IPO") or between the period
December 9, 1999, and December 6, 2000, (the "Traceable Period").
The complaint charges VA Linux and certain of its officers and directors,
along with Credit Suisse First Boston Corporation ("Credit Suisse") with
violations of the federal securities laws. Specifically, the complaint
alleges violation 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
On December 9, 1999, Linux completed the IPO when it sold 4.4 million
shares of common stock at an offering price of $30 per share ("VA Linux IPO").
In connection with the IPO, Linux filed a registration statement, which
incorporated a prospectus (the "Prospectus"), with the SEC.
The complaint alleges that the Prospectus was materially false and
misleading because it failed to disclose that Credit Suisse solicited and
received excessive and undisclosed commissions from certain investors in
exchange for Credit Suisse allocating to those investors material portions of
the restricted number of VA Linux shares issued in connection with the VA
The Complaint also alleges that Credit Suisse entered into agreements with
customers whereby Credit Suisse agreed to allocate VA Linux shares to those
customers in the VA Linux IPO in exchange for which those customers agreed to
purchase additional VA 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 VA Linux IPO.
Plaintiff seeks to recover damages on behalf of all class members who
purchased VA Linux securities in the IPO of VA Linux common stock on or about
December 9, 1999, (the "IPO"), or traceable thereto and who suffered damages.
Plaintiffs are represented by the law firm of Wechsler Harwood Halebian &
Feffer LLP which has extensive experience representing shareholders in class
actions and has been recognized as able practitioners by the courts.
If you acquired VA Linux securities in the IPO or during the Traceable
Period, you have until March 12, 2001, to participate in the case and ask the
Court to appoint you as one of the lead plaintiffs for the Class. In order to
serve as lead plaintiff, you must meet certain legal requirements. If you
wish to discuss this action or have any questions, please contact:
Wechsler Harwood Halebian & Feffer LLP
488 Madison Avenue - 8th Floor
New York, New York 10022
Telephone: (877) 935-7400 (toll free)
Facsimile: (212) 753-3630
Patricia Guiteau, Shareholder Relations Department:
SOURCE Wechsler Harwood Halebian & Feffer LLP