LOS ANGELES, Jan. 6, 2005 (PRIMEZONE) -- A class action lawsuit was filed in the U.S. District Court for the Central District of California on behalf of all persons who purchased the publicly traded securities of Conexant Systems, Inc. (Nasdaq: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.
Defendants include Conexant, Dwight W. Decker, and Armando Geday. The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5).
Conexant specializes in semiconductor solutions for broadband communications, enterprise networks and the digital home. The Complaint alleges that Conexant and certain of its officers and directors made a series of material misrepresentations concerning Conexant's earnings and 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.
Plaintiff seeks to recover damages on behalf of the Class and is represented by the Braun Law Group, P.C. whose attorneys have significant experience and expertise in prosecuting class actions and have played lead roles in major cases resulting in the recovery of millions of dollars to investors.
If you are a member of the class described above, you may, no later than February 15, 2005, move the Court to serve as lead plaintiff, 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 with respect to this matter, please visit the firms web-site at www.braunlawgroup.com or contact us directly.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.