Class Action Complaint Against Legato Systems, Inc. and Certain of Its Officers and Directors Alleging Violations of Federal Securities Law Filed by Rabin &Peckel LLP.Business Editors &Legal Writers NEW YORK--(BUSINESS WIRE)--Jan. 25, 2000 The following is an announcement by the law firm of Rabin &Peckel LLP LLP - Lower Layer Protocol : A class action complaint has been filed in the United States District Court for the Northern District of California The United States District Court for the Northern District of California is the Federal district court whose jurisdiction comprises following counties: Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa on behalf of all persons or entities who purchased or otherwise acquired shares of Legato Systems, Inc. (&uot;Legato&uot; or the &uot;Company&uot;) (Nasdaq: LGTO LGTO Legato Systems (stock symbol) ) between October 21, 1999 and January 19, 2000, inclusive (the &uot;Class Period&uot;). The Complaint alleges that Legato and certain of its officers and directors violated the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning the Company's financial results during the Class Period. Throughout the Class Period, the Company reported record results and maintained that the growth would continue through the fourth quarter of 1999 and beyond. During the Class Period, the Individual Defendants (Louis C. Cole, Kent D. Smith, Stephen Smith, Stephen (1823–1922) surgeon, public health pioneer; born in Onondaga County, N.Y. On the staff at Bellevue Hospital from 1851 until 1911, he wrote several textbooks, of which his Handbook of Surgical Operations C. Wise and Nora M. Denzel) engaged in a scheme to conceal Legato's badly flagging growth to prevent the decline in the price of Legato stock in order to (1) use Legato's artificially inflated stock as currency to fund the Company's acquisition of companies in stock-for-stock transactions and (ii) reap $11.5 million in insider trading profits. On January 19, 2000, the Company shocked the market when it announced that it would restate its third quarter financial statements and that it would fall desperately short of meeting its forecasted earnings for the fourth quarter of 1999. As a result of this news, the stock plummeted from a Class Period high of $79 1/4 to $29 per share. Plaintiff is represented by the law firm of Rabin &Peckel LLP. Rabin &Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . If you purchased or otherwise acquired Legato common stock during the Class Period described above, you may, no later than March 20, 2000, move the Court to serve as lead plaintiff. 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 announcement, or your rights or interests, please contact plaintiff=s counsel, Joseph V. McBride, Rabin &Peckel LLP, 275 Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, by e-mail at email@rabinlaw.com, or at the website at www.rabinlaw.com . |
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