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Class Action Lawsuit Commenced Against Transmeta Corporation By The Law Offices of Marc S. Henzel.

PHILADELPHIA, July 10 /PRNewswire/ --

A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Transmeta Corporation (Nasdaq: TMTA) publicly traded securities during the period between November 7, 2000 and June 20, 2001 (the "Class Period").

The complaint charges Transmeta and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. On 11/7/00, Transmeta completed its Initial Public Offering ("IPO") pursuant to a Registration Statement and Prospectus, selling 14,950,000 shares (including over-allotments) at $21.00 per share for net proceeds of $289 million. The complaint alleges that in connection with Transmeta's IPO and continuing throughout the Class Period, defendants made false and misleading statements about Transmeta's business and its principal product, the Crusoe family of microprocessors, stating that this technology represented a revolutionary process that delivered longer battery life in Mobile Internet Computers while delivering high performance. As a result, Transmeta's stock traded as high as $50-7/8 per share. In 5/01, as the Transmeta insiders' lock- up agreements expired, five of the Individual Defendants sold 829,500 of their Transmeta shares for proceeds of over $10.5 million.

Then, just weeks later, Transmeta was forced to admit that its results for the Second Quarter 2001 ("2Q01") would be much worse than defendants had previously represented and that Transmeta would, in order to properly account for its impaired inventory, be forced to record a multi-million dollar inventory charge in connection with Transmeta's inventory for defective and/or outdated products. Following Transmeta's announcement, Transmeta stock collapsed to $5.12 per share before closing at $5.36 per share, an 89% decline from its Class Period high of $50.875.

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 24, 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 Mhenzel182@aol.com or visit the firm's website at http://members.aol.com/mhenzel182.

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