COLCHESTER, Conn., May 15, 2006 (PRIMEZONE) -- On May 15, 2006, Scott+Scott, LLC, filed a class action against Vitesse Semiconductor Corp. ("Vitesse" or the "Company") (Nasdaq:VTSS) and certain officers and directors in the U.S. District Court for the Central District of California. The action is on behalf of Vitesse securities purchasers during the period January 28, 2003 and April 26, 2006, inclusive (the "Class Period"), for securities law violations. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's financial statements, including its accounting for product returns as well as the backdating of executive stock option grants. As a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased Vitesse securities during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than July 3, 2006. Any purported class member may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or visit the Scott+Scott website, www.scott-scott.com, for more information. There is no cost or fee to you.
According to the complaint, defendants made false and misleading statements to the investment community regarding the Company's financial performance during the Class Period. These statements served to actively conceal that the Company improperly accounted for credits provided to or requested by customers for product-related issues, including customer returns. In addition, as the complaint alleges, defendants concealed that they backdated the award of stock option grants to executives in order to reflect specific dates corresponding to lows in the price of the Company's stock, thereby maximizing the value of the option grants. When the Company fully revealed this information, on April 26, 2006, the price of Vitesse stock plummeted, losing $0.69 or 27.4%, from its closing price of $2.51 on April 26, to close at $1.82 on April 27, on nearly five times normal trading volume.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca