NEW YORK, April 28, 2006 (PRIMEZONE) -- The Rosen Law Firm (http://www.rosenlegal.com) today announced that it has commenced an investigation into allegations that Vitesse Semiconductor Corp. ("Vitesse" or the "Company") (Nasdaq: VTSS) may have violated the federal securities laws by issuing false and misleading financial statements during the reporting periods for the three months ended December 31, 2005 and the three years ended September 30, 2005. On April 18, 2006 the Company shocked the market when it announced that it had appointed a Special Committee of independent directors to conduct an internal investigation relating to past stock option grants, the timing of such grants and related accounting and documentation. The Company also announced that it had put on "administrative leave" the Company's founder and current CEO Louis R. Tomasetta, the Company's CFO Yatin Mody, and the Company's Executive Vice President Eugene Hovanec. Following this announcement, Vitesse stock fell 20%.
On April 26, 2006 the Company announced that as a result of the ongoing internal investigation, the Company's "reported financial statements for the three months ended December 31, 2005 and three years ended September 30, 2005 and possibly earlier periods should not be relied upon." The Company also announced for the first time, that "additional issues have arisen concerning the Company's practices in connection with credits issued to or requested by customers (for returned products or otherwise) and the related accounting treatment, as well as the application of payments received to the proper accounts receivable." As a result of this announcement the Company's stock fell an additional 27%.
As a result of these allegations, the Rosen Law Firm is preparing a class action lawsuit on behalf of investors who purchased Vitesse stock during the period from June 30, 2003 to April 26, 2006 against the Company and its current and former management.
If you purchased shares of Vitesse stock at anytime during the period from June 30, 2003 to April 26, 2006 and would like further information concerning your legal rights, please call Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or email lrosen@rosenlegal.com or pkim@rosenlegal.com or visit the website at www.rosenlegal.com
You may access the website at http://www.rosenlegal.com to participate in the proposed class action.
The Rosen Law Firm http://www.rosenlegal.com has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Rosen Law Firm represents investors throughout the nation, concentrating its practice in securities class actions.