Class Action Lawsuit Commenced Against Rambus, Inc. (RMBS) By Bernstein Liebhard & Lifshitz, LLP
Story Filed: Wednesday, August 15, 2001 10:02 AM EST
NEW YORK , NY, Aug 15, 2001 (INTERNET WIRE via COMTEX) -- A securities class action lawsuit was commenced on behalf all persons who acquired Rambus, Inc. (Nasdaq: RMBS) ("Rambus" or the "Company") securities between January 18, 2000 and May 19, 2001 (the "Class Period"). A copy of the complaint is available from the Court or from Bernstein Liebhard & Lifshitz, LLP. Please visit our website at www.bernlieb.com or contact us by phone at (800)217-1522 or by email at RMBS@bernlieb.com.
The case is pending in the United States District Court for the Northern District of California. Named as defendants in the complaint are Rambus and the following executive officers and directors of Rambus: Geoffrey R. Tate, David Mooring, Gary G. Harmon, Michael G. Horowitz, Paul Michael Farmwald, Bruce S. Dunlevie, Edward H. Larson, William Davidow.
The complaint charges defendants with violations of sections 10(b) and 20(a) the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that during the Class Period, defendants issued to the investing public false and misleading financial information that materially misstated the Company's condition and prospects. The complaint alleges that Rambus falsely promoted its patents and technologies relating to SDRAM chips which enabled Rambus to collect millions of dollars in royalties from the licensing of the SDRAM technology to other companies.
Specifically, the complaint alleges that throughout the class period, defendants issued materially false and misleading information and/or failed to disclose material information with regard to the following: i) that Rambus had engaged in fraudulent activity in order to obtain purportedly valuable patents on SDRAM computer memory and memory related technologies which enable semiconductor memory devices to keep pace with faster generations of processors and controllers; (ii) the validity and enforceability of Rambus' SDRAM patents; and (iii) the effects these adverse undisclosed actions were having and would continue to have on the company's growth and earnings prospects.
As a result of these misrepresentations, the price of Rambus common stock was artificially inflated throughout the Class Period. The individual defendants took advantage of the artificially inflated price of the Company's stock to sell hundreds of thousands of their own shares of Rambus stock for proceeds of over $125 million.
The truth was revealed to investors as a result of a lawsuit Rambus had instituted against Infineon Technologies AG (``Infineon''). Rambus had sued Infineon for patent violations, claiming that Infineon used SDRAM technology without paying a licensing fee to Rambus. Infineon counterclaimed, alleging that the patents were invalid and fraud based on Rambus' improper conduct in obtaining the patents. On May 9, 2001, a jury found that the SDRAM patents had in fact been fraudulently obtained. On August 9, 2001, the court in the Infineon case confirmed the jury's finding with regard to the SDRAM patents, ordered that Rambus pay Infineon $7.1 million in legal fees, and prohibited Rambus from pursuing patent-infringement litigation against Infineon for its SDRAM products.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Rambus securities during the Class Period. If you purchased or otherwise acquired Rambus securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than October 9, 2001.
Alead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard & Lifshitz, LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard & Lifshitz, LLP has been retained as one of the law firms to represent the Class. The attorneys at Bernstein Liebhard & Lifshitz, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. For more information about Bernstein Liebhard & Lifshitz, LLP, please visit our website at www.bernlieb.com.
If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Ms. Linda Flood, Director of Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800) 217-1522 or 212-779-1414 or by e-mail at RMBS@bernlieb.com.
CONTACT: Ms. Linda Flood
Director of Shareholder Relations
Bernstein Liebhard & Lifshitz, LLP
212-779-1414 |
