Rabin & Peckel LLP Announces Class Action Complaint Against Liberate Technologies, Inc.

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--June 6, 2001

Class Action Complaint Filed Against Liberate Technologies, Inc. and

Certain of Its Officers and Directors Alleging Violations of Federal

Securities Law by Rabin & Peckel LLP 

A class action complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased Liberate Technologies, Inc. ("Liberate" or the "Company") common stock (Nasdaq: LBRT) during the period from July 27, 1999 through December 6, 2000, both dates inclusive (the "Class Period").

The action, numbered 01 Civ. 4959 is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, NY 10007, against defendant Liberate Technologies, Inc. ("Liberate"), Credit Suisse First Boston Corporation ("Credit Suisse") (co-lead underwriter of the Company's IPO), BancBoston Robertson Stephens, Inc. ("BancBoston") (a member of the Offering underwriter group), Merrill Lynch, Pierce Fenner & Smith ("Merrill Lynch") (a member of the Offering Underwriter group), Mitchell E. Kertzman (President, Chief Executive Officer and director of Liberate), and Nancy J. Hilker (Vice President and Chief Financial Officer).

The Complaint alleges 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 SEC Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that on or about July 27, 1999, Liberate commenced the initial public offering of 6,250,000 shares of common stock at an offering price of $16 per share (the "Liberate IPO"). In connection therewith, Liberate 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) Credit Suisse, BancBoston and Merrill Lynch has solicited and received excessive and undisclosed commissions from certain investors in exchange for which Credit Suisse, BancBoston and Merrill Lynch allocated those investors material portions of Liberate shares issued in connection with the Liberate IPO; and (ii) Credit Suisse, BancBoston, and Merrill Lynch agreed to allocate Liberate shares to those customers in the Liberate IPO in exchange for which the customers agreed to purchase additional shares in the aftermarket at predetermined prices.

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 for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel at

If you purchased Liberate common stock during the Class Period described above, you may, no later than July 16, 2001, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Rekha M. Carozza and Maurice Pesso, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at [phone] or [phone], by facsimile at [phone], or by e-mail at [e-mail].