BOCA RATON, Fla., April 4, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has filed a class action in the United States District Court for the Southern District of New York on behalf of all individuals and institutional investors that purchased the securities of Red Hat, Inc. ("Red Hat" or the "Company") (Nasdaq:RHAT) between August 11, 1999 and May 25, 2000, inclusive (the "Class Period").
The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information in SEC filings. Specifically, the complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On August 11, 1999, Red Hat commenced an initial public offering of 6 million of its shares of common stock at an offering price of $14 per share (the "Red Hat IPO"). In connection therewith, Red Hat filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Goldman Sachs and Credit Suisse had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman Sachs and Credit Suisse allocated to those investors material portions of the restricted number of Red Hat shares issued in connection with the Red Hat IPO; and (ii) Goldman Sachs and Credit Suisse had entered into agreements with customers whereby Goldman Sachs and Credit Suisse agreed to allocate Red Hat shares to those customers in the Red Hat IPO in exchange for which the customers agreed to purchase additional Red Hat shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by May 28, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Sue Null, Charlie Gastineau or Jackie Addison Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca