Wechsler Harwood Announces Securities Class Action Suit Against Nuance Communications, Inc. (Nasdaq: NUAN)
PRNewswire
NEW YORK
Aug 16, 2001
A class action lawsuit in the United States District Court for the Southern District of New York, on behalf of purchasers of Nuance Communications, Inc. (NASDAQ: NUAN) securities between April 12, 2000 and December 6, 2000, inclusive. The action is pending against defendants Nuance and certain of its officers and directors, as well as Goldman, Sachs & Co., Thomas Weisel Partners LLC, Wit SoundView Group Inc., Dain Rauscher, Inc., and Salomon Smith Barney, Inc.
The complaint alleges that defendants violated the federal securities laws by issuing and selling Nuance common stock pursuant to the April 12, 2000 IPO without disclosing to investors that some of the underwriters in the offering, including the lead underwriters, had solicited and received excessive and undisclosed commissions from certain investors.
Specifically, the complaint alleges that in exchange for the excessive commissions, defendants allocated Nuance shares to customers at the IPO price. To receive the allocations (i.e., the ability to purchase shares) at the IPO price, the underwriters' brokerage customers had to agree to purchase additional shares in the aftermarket at progressively higher prices. The requirement that customers make additional purchases at progressively higher prices as the price of Nuance stock rocketed upward (a practice known on Wall Street as "laddering") was intended to (and did) drive Nuance's share price up to artificially high levels. This artificial price inflation enabled both the underwriters and their customers to reap enormous profits by buying stock at the IPO price and then selling it later for a profit at inflated aftermarket prices.
Plaintiff seeks to recover damages on behalf of class members.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than October 8, 2001, move the Court to serve as a lead plaintiff. 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). Please note, however, that class members need not seek appointment as lead plaintiff in order to share in any recovery resulting from this litigation.
Wechsler Harwood Halebian & Feffer LLP has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood Halebian & Feffer LLP website (http://www.whhf.com/) has more information about the firm.
If you wish to discuss this action with Wechsler Harwood, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue 8th Floor New York, New York 10022 Phone: 877-935-7400 (Toll Free) Patricia Guiteau, Shareholder Relations Department: pguiteau@whhf.com
SOURCE: Wechsler Harwood Halebian & Feffer LLP
Contact: Patricia Guiteau, Shareholder Relations Department of Wechsler
Harwood Halebian & Feffer LLP, +1-877-935-7400, pguiteau@whhf.com
Website: http://www.whhf.com/