Class Action Lawsuit Commenced Against Legato Systems, Inc. --LGTO-- by Bernstein Liebhard &Lifshitz, LLP.Business Editors &Legal Writers NEW YORK--(BUSINESS WIRE)--Feb. 10, 2000 A securities class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax was commenced on behalf of purchasers of the common stock of Legato Systems, Inc. (Nasdaq:LGTO LGTO Legato Systems (stock symbol) ) (Legato or the Company), between October 21, 1999 and January 19, 2000, inclusive, (the Class Period), 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 . The complaint charges Legato and certain of its directors and executive officers with violations of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. thereunder. The complaint alleges that the defendants issued materially false and misleading information concerning Legatos business, earnings growth and profitability in order to use the inflated stock as currency to acquire other companies in stock swap A stock swap also known as a share swap or equity swap is a business takeover in which the acquiring company uses its own stock to pay for the acquired company. transactions. Certain Company insiders took advantage of the artificially inflated stock price to sell over $11.5 million worth of their own stock. As part of the scheme to inflate the Company's profits and thereby its stock price, defendants caused Legato to improperly recognize revenue during the third quarter of 1999 and throughout the Class Period. On January 19, 2000, defendants revealed the truth and announced that Legato would restate its results for the third quarter and would fall well short of forecasted earnings for the fourth quarter of 1999. When the truth was disclosed, Legatos stock price plunged more than $29 per share from a Class Period high of over $79 per share. Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Legato common stock during the Class Period. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Mr. Mark Punzalan, Director of Shareholder Relations at Bernstein Liebhard &Lifshitz, LLP LLP - Lower Layer Protocol , 10 East 40th Street, 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 , New York 10016, 800/217-1522 or 212/779-1414 or by e-mail at Legato@bernlieb.com. |
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