Wechsler Harwood Commences Class Action Against Clarent Corporation (Nasdaq: CLRN)
PRNewswire
NEW YORK
Aug 23, 2001
On August 21, 2001 a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Clarent Corporation ("Clarent" or the "Company") (NASDAQ: CLRN) between July 1, 1999 and December 6, 2000, inclusive.
The action is pending against defendants Clarent and certain of its officers and directors, and its underwriters Credit Suisse First Boston Corp., and FleetBoston Robertson Stephens, Inc.
The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about July 1, 1999, Clarent commenced an initial public offering of 4,000,000 of its shares of common stock at an offering price of $15 per share (the "Clarent IPO"). In connection therewith, Clarent filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendants allocated to those investors material portions of the restricted number of Clarent shares issued in connection with the Clarent IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate Clarent shares to those customers in the Clarent IPO in exchange for which the customers agreed to purchase additional Clarent shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings.
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 September 10, 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, Wechsler
Harwood Halebian & Feffer LLP, +1-877-935-7400, pguiteau@whhf.com
Website: http://www.whhf.com/