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Shareholders sue Marimba, IPO underwriters

Marimba and the underwriters of its initial public offering have been hit by a class-action shareholder lawsuit alleging inaccuracies in the prospectus for Marimba's April 1999 initial public offering. The suit, filed in U.S. District Court for the Southern District of New York, says that Marimba's prospectus failed to disclose that underwriters Morgan Stanley, Credit Suisse First Boston and Bear Stearns allocated restricted shares to investors in exchange for "excessive and undisclosed commissions." It also alleges that the investment houses agreed to give those investors shares with the understanding that the investors would buy more shares later at predetermined prices. "These matters have no merit and no basis, and we will defend ourselves vigorously," said a representative for Credit Suisse First Boston. Marimba and Morgan Stanley declined to comment on the lawsuit. Bear Stearns could not immediately be reached for comment. Kirby McInerney & Squire is representing the class, which comprises people who bought Marimba shares between April 30, 1999, and March 27, 2000.

Marimba and the underwriters of its initial public offering have been hit by a class-action shareholder lawsuit alleging inaccuracies in the prospectus for Marimba's April 1999 initial public offering. The suit, filed in U.S. District Court for the Southern District of New York, says that Marimba's prospectus failed to disclose that underwriters Morgan Stanley, Credit Suisse First Boston and Bear Stearns allocated restricted shares to investors in exchange for "excessive and undisclosed commissions." It also alleges that the investment houses agreed to give those investors shares with the understanding that the investors would buy more shares later at predetermined prices.

"These matters have no merit and no basis, and we will defend ourselves vigorously," said a representative for Credit Suisse First Boston. Marimba and Morgan Stanley declined to comment on the lawsuit. Bear Stearns could not immediately be reached for comment. Kirby McInerney & Squire is representing the class, which comprises people who bought Marimba shares between April 30, 1999, and March 27, 2000.