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Securities lawyer Bill Lerach will start a new career as a jailbird. But if you thought that his sentencing to a couple of years would sate the thirst of critics, think again.
William Lerach says it's time to go--and the Schadenfreude was overflowing from one tip of the computer business to the other.
A new complaint in a shareholder lawsuit against Amazon.com accuses the online retailer of using accounting tricks to make its cash balance look bigger, according to a report. The complaint, filed Oct. 5 in U.S. District Court in Seattle by Milberg Weiss Bershad Hynes & Lerach, is a consolidation of various shareholder suits dating back to March, The Wall Street Journal reported. The original suit charged Amazon had misled investors by hiding the fact that millions of dollars' worth of promotional agreements with other Internet companies were to be paid to Amazon in stock, not cash, the report said. The consolidated complaint also includes charges that Amazon made its cash reserves look plumper by holding millions of dollars of accounts payable and then threatening to halt business with suppliers if they did not agree to unreasonable delays in payment, the report said. Amazon said the suit has no merit.
Redback Networks, which warned last week that it would fall short of analysts' estimates in its second quarter, received some more bad news Tuesday when it was slapped with a shareholder lawsuit. Investors who bought Redback shares between May 17, 1999, and Dec. 6, 2000, claim the network-equipment maker issued "materially false and misleading" statements in its prospectus and failed to disclose other pertinent information regarding its relationship with several investment banking firms. Redback shares, which closed off 44 cents to $8.61 a share Tuesday, traded between $21.03 and $81.31 a share during the 19-month span identified in the complaint. New York-based law firm Milberg, Weiss, Bershad, Hynes & Lerach is representing the shareholders.
Shareholders have filed a class-action lawsuit against chipmaker Transmeta, alleging that company executives made false statements about its business and certain products to boost its stock price. Announced Tuesday, the lawsuit alleges that in connection with Transmeta's initial public offering and continuing to June 20, the company made misleading statements about its Crusoe family of microprocessors, including overstating the battery life. New York-based law firm Milberg, Weiss, Bershad, Hynes & Lerach is handling the suit. The chipmaker denies any wrongdoing. "Transmeta has seen rumors of a shareholder lawsuit in the media, but has not been served with an actual complaint," Transmeta spokesman Phillip Bergman said. "The rumored lawsuit is without merit, and the company will vigorously contest it."
Attorney Bill Lerach and his law firm of Milberg Weiss Bershad Hynes & Lerach LLP have filed a class-action lawsuit against Ziff-Davis alleging that the technology publishing firm misrepresented its financial standing in regulatory documents filed in relation to its planned IPO. Ziff said that the suit is "without merit" and that it plans to "vigorously defend the action."
Shopping.com has been slapped with a securities fraud lawsuit filed by Milberg Weiss Bershad Hynes & Lerach, the firm said. The suit, which is seeking class-action status, covers plaintiffs who held stock between November 25, 1997 and March 26, 1998. Shopping.com's stock dropped more than 30 percent in mid-March.
A class-action suit has been filed on behalf of purchasers of Novell common stock between November 1, 1996, and April 22, 1997. The complaint alleges that, in order to conceal serious problems with Novell's business and thus artificially inflate its stock price, certain Novell insiders concealed the true nature and extent of the company's finances. The plaintiffs in the case are being represented by Milberg Weiss Bershad Hynes & Lerach and Kaplan, Kilsheimer & Fox.