The Emerson Firm Announces Class Action Lawsuit Filed Against Lantronix Inc. -- LTRXE


LITTLE ROCK, Ark., June 16, 2002 (PRIMEZONE) -- The Emerson Firm, a securities class action law firm, announced today that it had filed a class action in the United States District Court for the Central District of California on behalf of purchasers of Lantronix Inc. ("Lantronix" or the "Company") (Nasdaq:LTRXE) publicly traded securities during the period between April 25, 2001 and May 30, 2002, inclusive (the "Class Period").

The complaint charges Lantronix and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Lantronix designs, develops, and markets network device servers. The complaint alleges that during the Class Period, defendants caused Lantronix's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of this inflation, Lantronix was able to complete a secondary offering of 8 million shares, raising proceeds of $64 million on July 17, 2001.

The defendants' alleged wrongful course of business (i) artificially inflated the price of Lantronix's stock during the Class Period; (ii) deceived the investing public, including plaintiff and other Class members, into acquiring Lantronix's securities at artificially inflated prices; (iii) allowed certain of the Individual Defendants to sell more than $13 million worth of the shares held/controlled by them and allowed the Company to sell $50 million worth of its own stock; and (iv) permitted Lantronix to grow and benefit economically from the wrongful course of conduct.

Lantronix and its top officers inflated the price of the Company's stock in order to pursue an accelerated securities sale program. Defendants knew that concealing Lantronix's joint venture and the true impact it would have on the Company provided the only way that they could foster the perception in the business community that Lantronix was a "growth company," i.e., the only way Lantronix could post the revenue and earnings per share growth claimed by defendants.

If you bought Lantronix publicly traded securities between April 25, 2001 and May 30, 2002 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than July 15, 2002. If you are a member of this class, you can join this class action by contacting Ms. Tanya Autry at The Emerson Firm. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice.

The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors 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 are encouraged to call or e-mail the Firm.



      The Emerson Firm
      Investor Relations Department:
      Tanya R. Autry
      P.O. Box 25336
      Little Rock, AR 72221-5336
      Toll Free: 1-800-663-9817
      E-mail: tanya.autry@worldnet.att.net

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca



            

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