HARTFORD, Conn., June 11, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 the common stock of Netlist ("Netlist") (Nasdaq:NLST) pursuant and/or traceable to the Company's initial public offering (the "IPO" or the "Offering") on or about November 29, 2006 through April 17, 2007, inclusive (the "Class Period").
The Complaint charges Netlist and certain of its officers and directors with violations of Federal Securities laws. On November 30, 2006, the Prospectus which forms part of the Registration Statement (the "Prospectus") became effective and 6.25 million shares of Netlist's common stock were sold to the public at $7 per share, thereby raising more than $43 million. The complaint alleges that the Prospectus failed to disclose the following material facts: (i) two of the Company's primary customers, Dell and IBM, were over inventoried with product and would be reducing their purchases in the future until they worked through their inventory; (ii) Netlist was experiencing declining margins due to an unfavorable sales mix of products; and (iii) the Company's new products were having difficulty gaining market acceptance.
On April 16, 2007, Netlist announced that revenues and earnings for the first quarter of 2007 would be lower than its previous guidance -- given only two and a half months prior to this announcement. The Company also announced weak guidance for the second quarter of 2007. On this news, on April 17, 2007, the price of Netlist stock fell from $5.97 per share to $4.29 per share -- approximately 40% below the IPO price.
If you are a member of the class, you may, no later than July 27, 2007, 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 Izard, P.C. 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 Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.