NEW YORK, Aug. 2, 2006 (PRIMEZONE) -- Roy Jacobs & Associates announces that will amend its class action lawsuit previously filed in the United States District Court for the Northern District of California on behalf of purchasers of the common stock and other securities of Rambus Inc. ("Rambus" or the "Company") (Nasdaq:RMBS) to expand the class period (the "Class Period"). The expanded Class Period is from October 6, 2003 through July 18, 2006.
The Firm is also investigating today's release of a Federal Trade Commission decision against Rambus which held that it violated the antitrust laws and the FTC Act by engaging in a course of anticompetitive conduct.
For further information you may call toll free, 1-888-884-4490, or contact counsel by e-mail by writing to classattorney@pipeline.com.
The complaint alleges that Rambus and certain officers and directors violated the federal securities laws by making false and misleading statements and omissions concerning Rambus' improper and undisclosed practice of backdating options given to Rambus executives. Such a scheme improperly provides the executive with an unearned benefit -- instead of the option being priced at the market price of the shares, it is priced at a lower price. The practice of manipulating stock option dates not only potentially lines the pockets of the executives, but here resulted in the overstatement of Rambus's earnings between 2003 and 2005. Under accounting rules, back-dating the option is deemed the payment of additional compensation and must be accounted for as an expense, but Rambus did not properly account for the options granted. As a result, Rambus has been forced to restate its previously issued financial statements for the fiscal years 2003-2005. In addition, the Company has stated that the Quarterly Reports on Form 10-Q filed with respect to each of these fiscal years, and the financial statements included in the Company's Quarterly Report on Form 10-Q for the first quarter of fiscal year 2006, should no longer be relied upon, and will be restated.
If you purchased Rambus stock or other securities during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased Rambus stock or other securities from October 6, 2003 through July 18, 2006. You are not required to have sold your Rambus stock or other securities in order to claim damages, or to serve in this role. All motions for appointment as Lead Plaintiff must be filed with the Court by September 18, 2006.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca