DJ SEC, Nasdaq Inquires About Emulex's 3Q Revenue Warning
18 May 15:38
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 |
