NEW YORK, May 17, 2006 (PRIMEZONE) -- The law firm of Pomerantz Haudek Block Grossman & Gross LLP ("Pomerantz") (www.pomerantzlaw.com) filed a class action lawsuit in the United States District Court for the Central District of California, against Vitesse Semiconductor Corporation ("Vitesse" or the "Company") (Nasdaq:VTSS), and certain of its officers. The lawsuit was filed on behalf of purchasers of the common stock of the Company during the period from October 23, 2003 to April 26, 2006, inclusive (the "Class Period"). The complaint alleges violations of Sections 10(b) and 20(a) the Securities Exchange Act , and Rule 10b-5 promulgated thereunder. Vitesse, headquartered in Camarillo, California, engages in the design, development, manufacturing, and marketing of integrated circuits for systems manufacturers in the communications and storage industries. The Complaint alleges that during the Class Period, Defendants: (i) failed to properly account for credits issued to or requested by customers; (ii) failed to properly apply payments received to the appropriate account receivable; and (iii) failed to properly account for the stock options granted to senior officers and directors.
On April 18, 2006, after the trading of Vitesse common stock had been halted, the Company issued a press release announcing that a special committee had been appointed to investigate the timing of stock option grants. The following day, Vitesse shares plunged more than 32% from the prior day's close of $3.11 per share, to a closing price of $2.48 per share. A little over a week later, after the market closed on April 26, 2006, the Company announced that its reported financial statements should not be relied upon and that it had engaged an acting Chief Financial Officer. The following day, Vitesse shares plunged 23.5% with a closing price of $1.83 per share.
If you purchased the securities of Vitesse during the Class Period, you have until July 3, 2006, to ask the Court to appoint you as lead plaintiff for the Class. Lead plaintiffs must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action, or have any questions regarding the role of a lead plaintiff, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at (888) 476-6529 (or (888) 4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com
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