| Company: | Vitesse Semiconductor Corporation |
| Ticker Symbol: | NASD: VTSS |
| Class Period: | January 28, 2003 to April 26, 2006 |
| Date Filed: | May-02-06 |
| Lead Plaintiff Deadline: | Jul-03-06 |
| Court: | Central District, CA |
| Allegations: |
A class action lawsuit has been filed in the United States District Court, Central District of California, on behalf of all persons who purchased the securities of Vitesse Semiconductor Corporation ("Vitesse" or the "Company") (Nasdaq: VTSS - News) between January 28, 2003 and April 26, 2006, inclusive (the "Class Period"), against defendants Vitesse, certain of its officers and directors, including Louis R. Tomasetta, Yatin Mody, Eugene F. Hovanec, John Lewis, James A. Cole, Alex Daly, Moshe Gavrielov, and Vincent Chan, and KPMG LLP, the Company's auditors, alleging violations under the Securities Exchange Act of 1934, 15 U.S.C. Section 78(i)(b), 78(t) and 78t-1(a) and Rule 10b-5, promulgated thereunder, 17 C.F.R. Section 240.10b-5 (the "Class"). Mr. Tomasetta, Mr. Mody, and Mr. Hovanec were placed on administrative leave on April 18, 2006.
The Complaint alleges that throughout the Class Period, defendants issued numerous, positive press releases, statements and quarterly financial reports filed with the SEC that described the Company's financial performance. These statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that there were issues concerning the credits issued to or requested by customers (for returned products or otherwise) and the related accounting treatment; (b) that the Company improperly applied payments received to the proper accounts receivable; (c) that the Company's accounts receivable and revenues may have been misstated; (d) that there was misuse of stock option grants, the timing of such grants, and other related accounting and documentation issues; (e) that the Management Report on Internal Control over Financial Reporting as of September 30, 2005 could not be relied upon; (f) that the Company lacked adequate internal controls and was therefore unable to ascertain its true financial condition; and (g) that as a result of the foregoing, defendants engaged in improper accounting practices.
On April 26, 2006, the Company revealed that the Board of Directors retained special counsel to conduct an investigation into a series of issues and further stated that its previously reported financial statements for the three months ended December 31, 2005 and the three years ended September 30, 2005, and possibly earlier periods, should not be relied upon.
Following this news, shares of the Company's common stock fell over 27% to close at $1.82 per share, on unusually heavy trading volume of almost 59 million shares traded.
As a result of the dissemination of the false and misleading statements set forth above, the market price of Vitesse securities was artificially inflated during the Class Period. In ignorance of the false and misleading nature of the statements described above, and the deceptive and manipulative devices and contrivances employed by said defendants, plaintiffs and the other members of the Class relied, to their detriment, on the integrity of the market price of the stock in purchasing Vitesse securities. Had plaintiffs and the other members of the Class known the truth, they would not have purchased said shares, or would not have purchased them at the inflated prices that were paid.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The Complaint alleges that throughout the Class Period, defendants issued numerous, positive press releases, statements and quarterly financial reports filed with the SEC that described the Company's financial performance. These statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that there were issues concerning the credits issued to or requested by customers (for returned products or otherwise) and the related accounting treatment; (b) that the Company improperly applied payments received to the proper accounts receivable; (c) that the Company's accounts receivable and revenues may have been misstated; (d) that there was misuse of stock option grants, the timing of such grants, and other related accounting and documentation issues; (e) that the Management Report on Internal Control over Financial Reporting as of September 30, 2005 could not be relied upon; (f) that the Company lacked adequate internal controls and was therefore unable to ascertain its true financial condition; and (g) that as a result of the foregoing, defendants engaged in improper accounting practices.
On April 26, 2006, the Company revealed that the Board of Directors retained special counsel to conduct an investigation into a series of issues and further stated that its previously reported financial statements for the three months ended December 31, 2005 and the three years ended September 30, 2005, and possibly earlier periods, should not be relied upon.
Following this news, shares of the Company's common stock fell over 27% to close at $1.82 per share, on unusually heavy trading volume of almost 59 million shares traded.
As a result of the dissemination of the false and misleading statements set forth above, the market price of Vitesse securities was artificially inflated during the Class Period. In ignorance of the false and misleading nature of the statements described above, and the deceptive and manipulative devices and contrivances employed by said defendants, plaintiffs and the other members of the Class relied, to their detriment, on the integrity of the market price of the stock in purchasing Vitesse securities. Had plaintiffs and the other members of the Class known the truth, they would not have purchased said shares, or would not have purchased them at the inflated prices that were paid.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
