HARTFORD, Conn., May 3, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Vitesse Semiconductor Corporation ("Vitesse" or the "Company") (Nasdaq:VTSS) between October 23, 2003 and April 26, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants made material misstatements and omitted critical information regarding the timing of stock option grants made to key executives. On March 18, 2006, the Wall Street Journal published an article indicating potential options backdating activity at several companies, including Vitesse. On April 17, 2006, Vitesse CEO Louis Tomasetta, Executive Vice President Eugene Hovanec and the Company's CFO, Yatlin Mody, were placed on administrative leave as the Company investigated certain stock options transactions. On April 26, 2006, Vitesse further announced that it was restating its financial statements for the fiscal years ending September 2003, 2004, and 2005, as well as the quarter ending December 31, 2005. On this news, shares of Vitesse fell from $2.51 per share to $1.82 per share, or 27.5%.
If you are a member of the class, you may, no later than July 3, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.