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 New York on behalf of all purchasers of Red Hat, Inc. ("Red Hat" or the "Company") (Nasdaq:RHAT) securities between August 11, 1999 and May 25, 2000, inclusive (the "Class Period").
The complaint charges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Among other things, plaintiff claims that Red Hat's offering documents filed in connection with the Company's initial public offering (the "IPO") failed to disclose that: (i) Goldman Sachs and Credit Suisse had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman Sachs and Credit Suisse allocated to those investors material portions of the restricted number of Red Hat shares issued in connection with the Red Hat IPO; and (ii) Goldman Sachs and Credit Suisse had entered into agreements with customers whereby Goldman Sachs and Credit Suisse agreed to allocate Red Hat shares to those customers in the Red Hat IPO in exchange for which the customers agreed to purchase additional Red Hat shares in the aftermarket at pre-determined prices. Moreover, as alleged in the complaint, the SEC and U.S. Attorneys' Office are investigating underwriting practices in connection with several other initial public offerings.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased Red Hat securities between August 11, 1999 and May 25, 2000, 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 Red Hat securities during the Class Period, you may, no later than May 28, 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