CORV Got hit with lawsuit.
*DJ Suit Filed Vs Corvis Corp, Credit Suisse First Boston
10 May 12:57
(MORE) DOW JONES NEWS 05-10-01
12:57 PM
DJ Corvis Corp Suit -2: Says Credit Suisse Got Commissions
10 May 13:32
NEW YORK (Dow Jones)--Shareholders filed a lawsuit seeking class action
status against Corvis Corp. (CORV) and Credit Suisse First Boston Corp. (Z.CSF)
regarding Corvis' initial public offering.
The shareholders suggest that the telecommunications company, which makes
switching and routing equipment, misrepresented and/or omitted inflated
commissions paid to Credit Suisse First Boston, said shareholder attorneys
Stamell & Schager LLP in a press release Thursday.
Specifically, the complaint alleges that Credit Suisse obtained excessive and
undisclosed commissions from certain investors in exchange for preferential
allocations of restricted Corvis shares issued in the offering. It also alleged
Credit Suisse entered into buyback agreements with customers in which Credit
Suisse allocated Corvis shares in return for the customers' agreements to
purchase additional Corvis shares in the aftermarket at pre-determined prices.
Corvis officials weren't immediately available for comment.
Shares of Corvis, which had its initial offering in July of last year,
recently traded at $7.51, down 9 cents, or 1.2%, on Nasdaq volume of 2.53
million shares. Average daily volume is 8.33 million shares. The shares were
priced at $36 each in the initial offering.
Maria P. Vallejo; Dow Jones Newswires; 201-938-5400
(END) DOW JONES NEWS 05-10-01
01:32 PM
*DJ Deutsche Banc Starts Corvis At Buy ¨
11 May 09:33
(END) DOW JONES NEWS 05-11-01
09:33 AM |
