Wechsler Harwood Commences Securities Class Action Against VA Linux Systems, Inc. (Nasdaq: LNUX)

Jan 19, 2001, 00:00 ET from Wechsler Harwood Halebian & Feffer LLP

    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
 promulgated thereunder.
     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
 Linux IPO.
     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