BOCA RATON, Fla., April 3, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has filed a class action in the United States District Court for the Southern District of California on behalf of all individuals and institutional investors that purchased the common stock of JNI Corp. ("JNI" or the "Company") (Nasdaq:JNIC) between October 16, 2000 and January 24, 2001, inclusive, including stock purchased pursuant to JNI's October 19, 2000 Secondary Offering (the "Class Period").
The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's business and financial condition, and as a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. JNI designs and supplies Fibre Channel hardware and software products that connect servers and data storage devices to form storage area networks ("SANs"). The complaint alleges that during the Class Period, JNI made false statements about its business and results causing its stock to trade at artificially inflated levels. As a result of this inflation, JNI was able to complete a $382 million stock offering (including the over-allotment) pursuant to a Registration Statement and Prospectus dated 10/19/00.
JNI's stock price declined in early 11/00 due to stories appearing in the press questioning the Company's competitive position and the pending resignation of its CEO. However, the stock continued to be inflated as defendants asserted there were no problems with the business and it was "business as usual," and the CEO asserted that he would stay actively involved with the Company as a member of the board. Then, on 1/24/01, JNI reported 4thQ 00 revenues of only $30.7 million and analysts reduced 2001 EPS estimates to $0.80. Upon this disclosure, JNI's stock dropped to as low as $20, 84% below the Class Period high, on volume of 4.4 million shares.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by June 1, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca