Wechsler Harwood Halebian & Feffer LLP Files Class Action Suit Against Rambus Inc.
PRNewswire
NEW YORK
Aug 14, 2001
Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") has filed a class action lawsuit in the U.S. District Court for the Eastern District of Virginia on behalf of all shareholders who purchased the common stock of Rambus, Inc. ("Rambus") (NASDAQ: RMBS) between January 18, 2000 and May 9, 2001 (the "Class Period").
The complaint alleges that Rambus, a chip technology designer and its Chief Executive Officer violated the Federal securities laws by disseminating false and misleading information about the Company. Specifically, Rambus falsely promoted its patents and technologies relating to SDRAM chips and collected millions of dollars in royalties from the licensing of the SDRAM technology to other companies.
In the course of its self-promotion, however, Rambus failed to disclose to investors that its SDRAM patents were illegally obtained during meetings at the Joint Electronic Devices Engineering Council ("JEDEC"), an association of semiconductor manufacturers and designers that jointly develop industry-wide, open technical standards for semiconductor products, including SDRAM technology.
On August 8, 2000, Rambus sued Infineon Technologies AG ("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 during the JEDEC committee meetings. 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.
By the end of the Class Period, when the full extent of Rambus' fraudulent activity was discovered, Rambus' shares had declined to about $10 per share, causing investors millions of dollars in damages. The class action seeks to recover the damages caused by the improper conduct described above. If you are a member of the class described above, you may, no later than October 11, 2001, seek to participate in this action as a lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.
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 Ramon Pinon IV, rpinoniv@whhf.com - +1-877-935-7400 ext. 283
SOURCE: Wechsler Harwood Halebian & Feffer LLP
Contact: Ramon Pinon IV of Wechsler Harwood Halebian & Feffer LLP,
+1-877-935-7400, ext. 283, rpinoniv@whhf.com
Website: http://www.whhf.com/