BALA CYNWYD, Pa., May 30, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all purchasers of the common stock of Lantronix Inc. ("Lantronix") (Nasdaq:LTRX) from April 25, 2001 and May 15, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Lantronix Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that during the Class Period, defendants caused Lantronix's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of this inflation, Lantronix was able to complete a secondary offering of eight million shares, raising proceeds of $64 million on July 17, 2001.
The defendants' alleged wrongful course of business (i) artificially inflated the price of Lantronix's stock during the Class Period; (ii) deceived the investing public, including plaintiff and other Class members, into acquiring Lantronix's securities at artificially inflated prices; (iii) allowed certain of the Individual Defendants to sell more than $13 million worth of the shares held/controlled by them and allowed the Company to sell $50 million worth of its own stock; and (iv) permitted Lantronix to grow and benefit economically from the wrongful course of conduct.
Lantronix and its top officers inflated the price of the Company's stock in order to pursue an accelerated securities sale program. Defendants knew that concealing Lantronix's joint venture and the true impact it would have on the Company provided the only way that they could foster the perception in the business community that Lantronix was a "growth company," i.e., the only way Lantronix could post the revenue and earnings per share growth claimed by defendants.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which prosecutes class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than July 15, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca