LITTLE ROCK, Ark., March 16, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it had filed a class action in the united States District court for the Central District of California on behalf of all individuals and institutional investors that purchased the common stock of Broadcom Corporation ("Broadcom" or the "Company") (Nasdaq:BRCM) between October 18, 2000 and February 26, 2001, inclusive (the "Class Period"). The Class Period is being expanded to include purchases between July 31, 2000 and March 6, 2001, inclusive.
The complaint charges that the company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's business and financial condition, and as a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the Class Period. Specifically the complaint alleges that during the Class Period, defendants made positive but false statements about Broadcom's results and business, which essentially resulted in Broadcom buying its own revenues. As a result, Broadcom's stock traded at artificially inflated levels, permitting the three individual defendants to sell $45.8 million worth of their Broadcom stock.
Then, on 2/27/01, The Wall Street Journal published an article on Broadcom entitled "Warrant Deals Raise Concerns on Broadcom," in which analysts and accounting experts questioned the "legitimacy" of the transactions and termed the agreements "troubling." Broadcom's stock immediately dropped, falling 16% to %54, before closing at $53.625 on 2/27/01, and falling to $49.25 on 2/28/01.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by May 4, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Sue Null, Charlie Gastineau or Jackie Addison P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca