LOS ANGELES, June 14, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Northern District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Magma Design Automation, Inc. ("Magma" or the "Company") (Nasdaq:LAVA), between October 23, 2002 and April 12, 2005, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Magma and certain of the Company's executive officers with violations of federal securities laws. Magma provides electronic design automation software products and related services. The Complaint alleges that throughout the Class Period defendants failed to disclose that Magma faced the serious risk of infringing on intellectual property rights of competitor Synopsys, Inc. because inventions critical to Magma's business, and which were patented by Magma (the "438 and 446 patents"), were designed by Magma's chief scientist while he was employed by Synopsys. Plaintiff claims defendants knew or recklessly disregarded and failed to disclose material adverse facts, including that: (a) inventions claimed by Magma in the 438 and 446 patents were conceived by Magma's chief scientist while he was employed by Synopsys; (b) as a result, Magma's use of the patented technology ran the serious, but undisclosed, risk of infringing Synopsys' intellectual property rights; (c) Magma's incorporation of the technology encompassed by the 438 and 446 patents could be halted, thereby jeopardizing the Company's business; and (d) Magma could be subject to a material monetary judgment in an infringement action which was brought by Synopsys.
On April 13, 2005, Magma's chief scientist admitted in a sworn declaration filed in the Synopsys infringement action that inventions covered by two of Magma's patents were conceived by him while he was employed by Synopsys, and that at least his supervisor at Magma knew that the inventions covered by the patents were conceived by the scientist while at Synopsys and encompassed by an agreement with Synopsys that established its ownership of the rights to those inventions.
This disclosure caused Magma's stock to plummet more than 40% in one day, from $9.42 per share on April 12, 2005 to $5.58 per share on April 13, 2005, on unusually high trading volume of more than 14 million shares.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than August 15, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com