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Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against NVE Corporation.

SAN DIEGO -- Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") ( today announced that a class action has been commenced in the United States District Court for the District of Minnesota on behalf of purchasers of NVE Corporation ("NVE") (NASDAQ:NVEC) common stock during the period between May 22, 2003 and February 11, 2005 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from February 10, 2006. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges NVE and certain of its officers and directors with violations of the Securities Exchange Act of 1934. NVE engages in the development and sale of spintronics devices and also licenses its spintronic Magnetoresistive Random Access Memory ("MRAM") technology to other companies, including Cypress Semiconductor Corp. ("Cypress"). During the Class Period, NVE claimed that Cypress was using its alleged "watershed" MRAM patent and that NVE would purportedly receive royalties from its licensing of its MRAM intellectual property to Cypress and other companies. Then on February 14, 2005, before the market opened, Cypress announced its intention to divest Silicon Magnetic Systems, a subsidiary Cypress had founded to commercialize MRAMs. On this news, the price of the Company's shares fell, losing close to 50% in value in the weeks that followed.

The complaint alleges that the true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) Cypress's MRAM product does not use the technology NVE claimed to own and/or have rights to; (b) NVE's MRAM patents are immaterial and unenforceable; (c) the Company's claimed significance during the Class Period of its receipt of patent 6,744,086 was of little consequence, as the patent application was several years old and the patent had been granted a month earlier; (d) NVE did not invent/develop the idea of using one transitor to read every magnetic memory cell in an MRAM chip; and (e) the Company's announcement that Cypress's MRAM products were covered by NVE's technology agreement with Cypress was materially misleading, as Cypress was not required to (and did not) pay NVE any royalty payments under its technology agreement. As a result of the defendants' false statements during the Class Period, NVE stock traded at inflated levels, whereby the individuals defendants sold more than $8.4 million worth of their own shares.

Plaintiff seeks to recover damages on behalf of all purchasers of NVE common stock during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Lerach Coughlin, a 160-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site ( has more information about the firm.
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Publication:Business Wire
Date:Mar 6, 2006
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