BALA CYNWYD, Pa., Aug. 3, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits against Chinadotcom Corp., Covad Communications Group, Inc., Palm, Inc. and New Focus, Inc. for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the respective class periods, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our Website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at (888) 299-7706 (toll free) or (610) 667-7706, fax number (610) 667-7056, or by e-mail at info@sbclasslaw.com.
CHINADOTCOM CORP. (Nasdaq:CHINA) (Class Period: 07/12/99 - 12/06/00). On or about July 12, 1999 Chinadotcom commenced an initial public offering of 4.2 million of its shares of common stock at an offering price of $20 per share (the "Chinadotcom IPO"). In connection therewith, Chinadotcom filed a registration statement, which incorporated a prospectus (the "Prospectus") with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriter Defendants (Lehman Brothers, Inc., Bear Stearns & Co., Inc., BancBoston Robertson Stephens, Inc., and Merrill Lynch) had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriter Defendants allocated to those investors material portions of the restricted number of Chinadotcom shares issued in connection with the Chinadotcom IPO; and (ii) the Underwriter Defendants had entered into agreements with customers whereby the Underwriter Defendants agreed to allocate Chinadotcom shares to those customers in the Chinadotcom IPO in exchange for which the customers agreed to purchase additional Chinadotcom shares in the aftermarket at pre-determined prices. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than Aug. 27, 2001.
COVAD COMMUNICATIONS GROUP, INC. (Nasdaq:COVD) (Class Period: 01/21/99 - 01/11/01). On or about Jan. 21, 1999, Covad commenced an initial public offering of 7.8 million of its shares of common stock at an offering price of $18 per share (the "Covad IPO"). In connection therewith, Covad filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Bear Stearns, Goldman Sachs, Robertson Stephens and Smith Barney had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Bear Stearns, Goldman Sachs, Robertson Stephens and Smith Barney allocated to those investors material portions of the restricted number of Covad shares issued in connection with the Covad IPO; and (ii) Bear Stearns, Goldman Sachs, Robertson Stephens and Smith Barney had entered into agreements with customers whereby Bear Stearns, Goldman Sachs, Robertson Stephens and Smith Barney agreed to allocate Covad shares to those customers in the Covad IPO in exchange for which the customers agreed to purchase additional Covad shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than Aug. 27, 2001.
PALM , INC. (Nasdaq:PALM) (Class Period: 03/01/00 - 03/28/01). On or about March 1, 2000, Palm commenced an initial public offering of 23 million of its shares of common stock at an offering price of $38 per share (the "Palm IPO"). In connection therewith, Palm filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriter Defendants (Goldman Sachs, Morgan Stanley, Merrill Lynch, Robertson Stephens and Salomon Smith Barney) had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriter Defendants allocated to those investors material portions of the restricted number of Palm shares issued in connection with the Palm IPO; and (ii) the Underwriter Defendants had entered into agreements with customers whereby the Underwriter Defendants agreed to allocate Palm shares to those customers in the Palm IPO in exchange for which the customers agreed to purchase additional Palm shares in the aftermarket at pre-determined prices. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than Aug. 27, 2001.
NEW FOCUS, INC. (Nasdaq:NUFO) (Class Period: 05/18/00 - 07/23/01). On or about May 18, 2000, New Focus commenced an initial public offering of 5 million of its shares of common stock at an offering price of $20 per share (the "New Focus IPO"). In connection therewith, New Focus filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Credit Suisse First Boston Corporation ("Credit Suisse"), FleetBoston Robertson Stephens, Inc. ("Robertson Stephens") and Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Credit Suisse, Robertson Stephens and Merrill Lynch allocated to those investors material portions of the restricted number of New Focus shares issued in connection with the New Focus IPO; and (ii) Credit Suisse, Robertson Stephens and Merrill Lynch had entered into agreements with customers whereby Credit Suisse, Robertson Stephens and Merrill Lynch agreed to allocate New Focus shares to those customers in the New Focus IPO in exchange for which the customers agreed to purchase additional New Focus shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than Aug. 27, 2001.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for more than 14 years and has recovered more than $1 billion for investors. If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at (888) 299-7706.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.