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Class Action Lawsuit Commenced Against Palm Inc. By The Law Offices of Marc S. Henzel.

PHILADELPHIA, July 10 /PRNewswire/ --

A class action lawsuit was filed in the United States District Court, Southern District of New York on behalf of purchasers of the securities of Palm Inc. (Nasdaq: PALM) between March 1, 2000 and December 6, 2000, inclusive.

The complaint alleges violations of 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. On or about March 1, 2000 Palm commenced an initial public offering of 23,000,000 of its shares of common stock at an offering price of $38.00 per share (the "Palm IPO"). In connection therewith, Palm 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) the Underwriter Defendants (Goldman Sachs, Morgan Stanley, Merrill Lynch, Robertson Stephens and Salomon Smith Barney) had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriter Defendants allocated to those investors material portions of the restricted number of Palm shares issued in connection with the Palm IPO; and (ii) the Underwriter Defendants had entered into agreements with customers whereby the Underwriter Defendants agreed to allocate Palm shares to those customers in the Palm IPO in exchange for which the customers agreed to purchase additional Palm shares in the aftermarket at pre-determined prices.

Plaintiff is represented by The Law Offices of Marc S. Henzel. If you are a member of the class described above, you have until August 27, 2001, to participate in the case and ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.

If you have any questions concerning this case or your rights or interests with respect to these matters, please contact: Marc S. Henzel, Esq. of The Law Offices of Marc S. Henzel, 210 West Washington Square, Third Floor Philadelphia, PA 19106, by telephone at (888) 643-6735 or (215) 625-9999, by facsimile at (215) 440-9475, by e-mail at or visit the firm's website at

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Publication:PR Newswire
Geographic Code:1USA
Date:Jul 10, 2001
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