EMLX- DJ SEC, Nasdaq Inquires About Emulex's 3Q Revenue Warning
WASHINGTON (Dow Jones)--Emulex Corp. (EMLX) said it has received
inquiries from the Securities and Exchange Commission and the Nasdaq
Stock Market about events that led to several shareholder lawsuits
alleging securities violations.
The company disclosed the inquiries in its quarterly report filed
Wednesday with the SEC. No further information about the inquiries was
provided and company officials weren't immediately available for
comment.
The first of several lawsuits, filed on behalf of investors who
bought Emulex stock between Jan. 18 and Feb. 9, was filed in April, 11
days after Emulex announced that third-quarter revenue could be flat
sequentially because several original-equipment manufacturing
customers deferred orders to the fourth quarter.
The investors allege that certain Emulex officers and directors made
false statements about the company's results while concealing
information about the deferred orders. As a result, they allege,
Emulex shares traded at artificially inflated levels, permitting the
officers and directors to sell $40.4 million worth of their Emulex
stock. After the news was released, the company's shares fell 48%.
Emulex said in the filing the lawsuits are without merit and it
intends to defend itself vigorously.
Emulex, Costa Mesa, Calif., makes adapters, hubs and other computer
network equipment.
Its stock recently traded at $43.39, down 34 cents, or 0.8%. The
shares traded as high as $109.75.
-By Carrie DeLeon, Dow Jones Newswires; 202-628-7663
(END) DOW JONES NEWS 05-18-01
03:38 PM
- - 03 38 PM EDT 05-18-01
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