Faruqi & Faruqi, LLP Announces Filing of Class Action Lawsuit Against JNI Corp. - JNIC


NEW YORK, April 12, 2001 (PRIMEZONE) -- The following announcement was issued by the law firm of Faruqi & Faruqi, LLP:

Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of California on behalf of all purchasers of JNI Corp. ("JNI") (Nasdaq:JNIC) securities between October 16, 2000 and January 24, 2001, inclusive (the "Class Period").

The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Among other things, plaintiff claims that defendants issued a series of materially false and misleading statements in SEC filings and press releases about its business prospects and results causing its stock to trade at artificially inflated levels. As a result of this inflation, JNI was able to complete a $382 million stock offering pursuant to a Registration Statement and Prospectus dated October 19, 2000. On November 9, 2000, just two and one-half weeks after completing the offering, JNI admitted that it expected its sales of products designed to work with the SBus interface to decline. Although JNI's stock price declined in early November due to stories appearing in the press questioning the Company's competitive position and the pending resignation of its CEO, the defendants asserted there were no problems with the business and it was "business as usual."

However, on January 24, 2001, JNI shocked the market when it reported fourth quarter 2000 revenues of only $30.7 million, causing analysts to reduce 2001 EPS estimates to $0.80. As a result of this disclosure, JNI's stock dropped to as low as $20.00, 84% below the Class Period high, on volume of 4.4 million shares.

Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased JNI securities between October 16, 2000 and January 24, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.

If you purchased JNI securities during the Class Period, you may, no later than June 1, 2001, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:


  Anthony Vozzolo, Esq.
  Faruqi & Faruqi, LLP
  320 East 39th Street
  New York, NY 10016
  Telephone: (877) 247-4292 or (212) 983-9330
  e-mail (FaruqiLawAV@aol.com)

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca



            

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