Schatz & Nobel, P.C. Announces Class Action Lawsuit Against Conexant Systems, Inc.
17 Décembre 2004 - 7:28PM
PR Newswire (US)
Schatz & Nobel, P.C. Announces Class Action Lawsuit Against
Conexant Systems, Inc. HARTFORD, Conn., Dec. 17 /PRNewswire/ -- The
law firm of Schatz & Nobel, P.C., which has significant
experience representing investors in prosecuting claims of
securities fraud, announces that a lawsuit seeking class action
status has been filed in the United States District Court for the
District of New Jersey on behalf of all persons who purchased the
publicly traded securities of Conexant Systems, Inc. (NasdaqNM:
CNXT) ("Conexant") between March 1, 2004 and November 4, 2004 (the
"Class Period"), including all former holders of GlobespanVirata,
Inc. ("Globespan") who acquired Conexant shares in the merger
completed March 1, 2004. The complaint alleges that Conexant
violated federal securities laws by issuing false or misleading
statements concerning its integration with Globespan. Specifically,
the complaint alleges that Conexant repeatedly stated that the
integration was successful when in fact there were significant
problems with respect to the combined companies' parallel DSL and
wireless technology offerings, as well as their sales and
administration functions. The complaint alleges that Conexant
issued false and misleading statements when it claimed that its
wireless LAN ("WLAN") business was experiencing reduced growth due
to competition from Taiwan-based chip suppliers when, in fact, the
problem was actually caused by the combined companies' WLAN
business not being properly integrated in the merger. On November
4, 2004, Conexant released its financial and operational results
for the fourth quarter ended October 1, 2004, reporting that its
"fourth fiscal quarter 2004 revenues of $213.1 million decreased 20
percent from the third fiscal quarter revenues of $267.6 million,"
and stating that "Conexant's sequential decline in revenues to
$213.1 million in the fourth fiscal quarter was largely due to
excess channel inventory that resulted from lower-than-expected
customer demand. . . ." On this news Conexant stock fell from a
close of $1.76 on November 4, 2004, to close at $1.60 on November
5, 2004. If you are a member of the class, you may, no later than
February 15, 2005, request that the Court appoint you as lead
plaintiff of the class. A lead plaintiff is a class member that
acts on behalf of other class members in directing the litigation.
Although your ability to share in any recovery is not affected by
the decision whether or not to seek appointment as a lead
plaintiff, lead plaintiffs make important decisions which could
affect the overall recovery for class members, including decisions
concerning settlement. The securities laws require the Court to
consider the class member(s) with the largest financial interest as
presumptively the most adequate lead plaintiff(s). For more
information about the case, its claims, and your rights, please
contact Schatz & Nobel toll-free at (800) 797-5499, or by
e-mail at . To view a copy of the lawsuit initiating the class
action, or for more information about class action cases and Schatz
& Nobel, please visit our website: http://www.snlaw.net/.
CONTACT: Wayne T. Boulton Tel.: (800) 797-5499 Website:
http://www.snlaw.net/ e-mail: DATASOURCE: Schatz & Nobel, P.C.
CONTACT: Wayne T. Boulton of Schatz & Nobel, +1-800-797-5499,
Web site: http://www.snlaw.net/
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