NEW ORLEANS, April 17, 2007 (PRIME NEWSWIRE) -- Kahn Gauthier Swick, LLC ("KGS") announces that it is continuing its investigation into Netlist, Inc. ("Netlist" or the "Company") (Nasdaq:NLST) to determine whether it has violated federal securities laws by selling stock pursuant to a materially false and misleading prospectus in or about November 30, 2006.
Shares of Netlist sunk to an intraday low of $4.21 per share on Tuesday, April 17, 40% lower than the initial public offering price of $7 and two-thirds lower than the $12.64 high achieved weeks after IPO, after the Company said customers are delaying orders for memory systems and prices for those systems are falling. The Company cut its first-quarter earnings forecast to a range of 2 cents to 3 cents a share on revenue of $37 to $38 million, 5 cents lower than the previous forecasted range and below the previous $40 million to $42 million guidance.
KGS is also investigating Company insiders to determine whether they sold millions of dollars of stock in the IPO in violation of federal securities laws.
If you are a Netlist shareholder or purchased shares in the IPO or shortly thereafter, and would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext., 100, or by email at lewis.kahn@kgscounsel.com. KGS focuses its practice on securities fraud litigation, and the firm's lawyers have significant experience working on securities fraud cases that have resulted in significant recoveries for shareholders. For more information on KGS, please visit www.kgscounsel.com.