NEW YORK, June 1, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of all purchasers of Liberate Technologies, Inc. ("Liberate" or the "Company") (Nasdaq:LBRT) securities between July 28, 1999 through December 6, 2000, inclusive (the "Class Period"), against Liberate, Mitchell E. Kertzman (President, Chief Executive Officer and a director of Liberate), Nancy J. Hilker (Vice President and Chief Financial Officer), Credit Suisse First Boston Corporation ("CSFB") (co-lead underwriter of the Company's IPO), BancBoston Robertson Stephens, Inc. ("BancBoston") (a member of the Offering underwriter group), and Merrill Lynch, Pierce Fenner & Smith Incorporated ("Merrill Lynch") (a member of the Offering underwriter group).
The complaint charges that defendants violated Sections 11, 12 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Among other things, plaintiff claims that Liberate's offering documents filed in connection with the Company's initial public offering (the "IPO") failed to disclose that certain underwriters in the offering had solicited and received additional, excessive and undisclosed commissions from certain investors in exchange for which it allocated to those investors substantial blocks of Liberate shares issued in connection with the offering. However, to receive the allocations (i.e., the ability to purchase shares) at the $16.00 IPO price, the defendant underwriters' brokerage customers had to agree to purchase additional shares in the after market at pre-determined prices. Such tie-in arrangements were designed to and did maintain and/or artificially inflate the market price for Liberate shares. Moreover, as alleged in the complaint, the SEC and U.S. Attorneys' Office are investigating underwriting practices in connection with several other initial public offerings.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Liberate securities between July 28, 1999 through December 6, 2000, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you purchased Liberate securities during the Class Period, you may, not later than July 16, 2001, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (FaruqiLawAV@aol.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.