Wechsler Harwood Halebian & Feffer LLP Files Class Action Suit Against Transmeta Corporation
PRNewswire
NEW YORK
Jul 12, 2001
Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of purchasers of Transmeta Corporation ("Transmeta") (NASDAQ: TMTA) during the period between November 7, 2000 and June 20, 2001, inclusive (the "Class Period").
The complaint charges Transmeta and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. On November 7, 2000, Transmeta completed its Initial Public Offering ("IPO") pursuant to a Registration Statement and Prospectus, selling 14,950,000 shares (including over-allotments) at $21.00 per share for net proceeds of $289 million. The complaint alleges that in connection with Transmeta's IPO and continuing throughout the Class Period, defendants made false and misleading statements about Transmeta's business and its principal product, the Crusoe family of microprocessors, stating that this technology represented a revolutionary process that delivered longer battery life in Mobile Internet Computers while delivering high performance. As a result, Transmeta's stock traded as high as $50-7/8 per share. In May 2001, as the Transmeta insiders' lock- up agreements expired, five of the Individual Defendants sold 829,500 of their Transmeta shares for proceeds of over $10.5 million.
Then, just weeks later, Transmeta was forced to admit that its results for the Second Quarter 2001 would be much worse than defendants had previously represented and that Transmeta would, in order to properly account for its impaired inventory, be forced to record a multi-million dollar inventory charge in connection with Transmeta's inventory for defective and/or outdated products. Following Transmeta's announcement, Transmeta stock collapsed to $5.12 per share before closing at $5.36 per share, an 89% decline from its Class Period high of $50.875.
Plaintiffs seek to recover damages on behalf of all purchasers of Transmeta publicly traded securities during the Class Period (the "Class"). If you are a member of the class described above, you have until August 24, 2001 to participate in the case and ask the Court to appoint you as one of the lead plaintiffs for the Class. A lead 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." The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4). Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Plaintiff is represented by Wechsler Harwood. Wechsler Harwood has significant experience in prosecuting investor class actions and actions involving financial fraud. You may visit the firm's website at http://www.whhf.com/.
If you have any questions about this notice or the action, or with regard to your rights, please contact:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue 8th Floor New York, NY 10022 David Leifer, dleifer@whhf.com - 877-935-7400 ext. 251
SOURCE: Wechsler Harwood Halebian & Feffer LLP
Contact: David Leifer of Wechsler Harwood Halebian & Feffer LLP,
877-935-7400 ext. 251, dleifer@whhf.com
Website: http://www.whhf.com/