BALA CYNWYD, Pa., June 28, 2002 (PRIMEZONE) -- A shareholder sued Lantronix Inc. ("Lantronix") (Nasdaq:LTRX) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Central District of California and seeks damages for violations of federal securities laws on behalf of all investors who bought Lantronix Inc. securities between November 2, 2000 and May 30, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Lantronix Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that Lantronix Inc.'s alleged wrongful course of business (i) artificially inflated the price of Lantronix's stock during the Class Period; (ii) deceived the investing public, including plaintiff and other Class members, into acquiring Lantronix's securities at artificially inflated prices; (iii) allowed certain of the Individual Defendants to sell more than $13 million worth of the shares held/controlled by them and allowed the Company to sell $50 million worth of its own stock; and (iv) permitted Lantronix to grow and benefit economically from the wrongful course of conduct.
Lantronix and its top officers inflated the price of the Company's stock in order to pursue an accelerated securities sale program. Defendants knew that concealing Lantronix's joint venture and the true impact it would have on the Company provided the only way that they could foster the perception in the business community that Lantronix was a "growth company," i.e., the only way Lantronix could post the revenue and earnings per share growth claimed by defendants.
If you purchased Lantronix Inc. securities between November 2, 2000 and May 30, 2002, you may be a member of the class and have until July 15, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.