BALA CYNWYD, Pa., Nov. 7, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits on behalf of shareholders of Northpoint Communications Group, Inc., Onyx Software Corp., Verado Holdings, Inc. and Tut Systems, Inc. for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the respective class periods, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our Website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at (888) 299-7706 (toll free) or (610) 822-2221, fax number (610) 822-0002 or by e-mail at info@sbclasslaw.com.
NORTHPOINT COMMUNICATIONS GROUP, INC. (OTCBB:NPNTQ) (05/05/99 - 12/06/00). 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 or about May 5, 1999, Northpoint commenced an initial public offering of 15,000,000 of its shares of common stock at an offering price of $24 per share (the "Northpoint IPO"). In connection therewith, Northpoint 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) the Underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriters allocated to those investors material portions of the restricted number of Northpoint shares issued in connection with the Northpoint IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate Northpoint shares to those customers in the Northpoint IPO in exchange for which the customers agreed to purchase additional Northpoint shares in the aftermarket at pre-determined prices. The complaint was filed in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, N.Y. The lead plaintiff motion must be filed no later than January 1, 2002.
ONYX SOFTWARE CORP. (Nasdaq:ONXS) (Class Period: 01/10/01 - 08/10/01). The complaint charges Onyx and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Onyx is a supplier of customer-relationship management enterprise applications that are designed to connect a company's sales, marketing and service organizations with customers, prospects and partners. On January 19, 2001, Onyx announced the acquisition of Revenue Lab and, after the close of the market, hosted a conference call to discuss the acquisition and the Company's business and prospects. Later, Onyx reported favorable, but false, financial results. The complaint alleges that during the Class Period, Onyx made misleading statements about its business and issued false and misleading financial results, causing its stock to be artificially inflated. As a result of this inflation, Onyx was able to complete a secondary offering of 2.5 million shares at $13.50 per share, raising net proceeds of $31.5 million on Feb. 7, 2001.
Then, on April 3, 2001, just weeks after this offering was completed, Onyx revealed that its 1stQ01 results would be sharply lower than the market had been led to expect with revenues of only $26-$27 million and a large loss. The stock dropped below $3 per share on this news. Later, on Aug. 10, 2001, after the market closed, defendants revealed that Onyx's 4thQ00 results had been materially misstated and would have to be restated. After this announcement, Onyx's stock price dropped to as low as $3.70 on Aug. 13, 2001 compared to the Class Period high of $17.25. The complaint was filed in the U.S. District Court for the District of Washington. The lead plaintiff motion must be filed no later than October 29, 2001.
VERADO HOLDINGS, INC. (Nasdaq:VRDO) (03/08/00 - 12/06/00). 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 or about March 8, 2000, Verado commenced an initial public offering of 10,000,000 of its shares of common stock at an offering price of $17 per share (the "Verado IPO"). In connection therewith, Verado 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) the Underwriters on the offering had solicited and received excessive and undisclosed commissions from certain investors in exchange for which those Underwriters allocated to those investors material portions of the restricted number of the Verado shares issued in connection with the Verado IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate Verado shares to those customers in the Verado IPO in exchange for which the customers agreed to purchase additional Verado shares in the aftermarket at pre-determined prices. The complaint was filed in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, N.Y. The lead plaintiff motion must be filed no later than December 30, 2001.
TUT SYSTEMS, INC. (Nasdaq:TUTS) (01/29/99 - 12/06/00). 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 or about January 29, 1999, Tut commenced an initial public offering of 2,500,000 of its shares of common stock at an offering price of $18 per share (the "Tut IPO"). In connection therewith, Tut 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) the Underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriters allocated to those investors material portions of the restricted number of Tut shares issued in connection with the Tut IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate Tut shares to those customers in the Tut IPO in exchange for which the customers agreed to purchase additional Tut shares in the aftermarket at pre-determined prices. The complaint was filed in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, N.Y. The lead plaintiff motion must be filed no later than January 1, 2002.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at (888) 299-7706.
More information on these and other class actions can be found at www.primezone.com/ca.