LOS ANGELES, May 9, 2006 (PRIMEZONE) -- Yourman Alexander & Parekh LLP, a law firm with significant experience in prosecuting claims for securities and consumer fraud, announces that a lawsuit seeking class action status has been filed on behalf of shareholders who purchased or otherwise acquired the securities of Vitesse Semiconductor Corporation ("Vitesse" or the "Company") (Nasdaq:VTSS) during the period October 23, 2003, through April 26, 2006, inclusive (the "Class Period"). The matter is pending in the United States District Court for the Central District of California.
Among other things, the complaint alleges that defendants, which include certain officers and directors of the Company, violated federal securities laws by failing to present the true financial condition of Vitesse. It is further alleged that defendants committed these violations by issuing false and misleading statements to the investing community concerning the Company's current financial condition, and that by omitting to disclose the truth about Vitesse's financial performance during the Class Period, defendants artificially inflated the price of the Company's securities for their own personal gain. For example, it is alleged that defendants made material misrepresentations and omitted information regarding the timing of certain stock option grants made to key executives. On April 26, 2006, the Company announced that certain financial statements should not be relied upon and that it was restating financial statements for fiscal years ending September 30, 2003, September 20, 2004 and September 30, 2005, as well as the quarter ending December 31, 2005. The complaint also alleges that as a result of these disclosures, and others, Vitesse shares dropped from $2.51 to $1.82 per share, or approximately 27.5%.
Since a class has not yet been certified in the above action, you are not represented by counsel in this matter. Furthermore, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), if a person or institution purchased or acquired Vitesse securities from October 23, 2003, through April 26, 2006, inclusive, and suffered a loss, the deadline to move for appointment as Lead Plaintiff is July 3, 2006. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The securities laws require the Court to consider the class member(s), with the largest financial interest, i.e. the largest financial loss, as presumptively the most adequate Lead Plaintiff(s). In order to serve as a Lead Plaintiff, you must meet certain legal requirements. While your ability to share in any recovery is not affected by your decision of whether or not to seek appointment as a Lead Plaintiff, it is worth noting that Lead Plaintiffs are responsible for making important decisions which could affect the overall recovery for class members, including decisions concerning settlement. If you are only concerned with your ability to participate as a class member, you do not need to take any action at this time.
If you: (i) wish to discuss this action, have information concerning this case, or acquired shares through your Vitesse retirement account; (ii) have questions concerning this Notice or your rights or interests with respect to this litigation; or (iii) have any other potential matters that you would care to discuss, please contact Vahn Alexander of Yourman Alexander & Parekh LLP, 3601 Aviation Blvd., Suite 3000, Manhattan Beach, California 90266 by telephone, toll-free at (800) 725-6020, or by email to valexander@yaplaw.com. There will be no obligation or cost to you concerning your inquiry. Attorneys with Yourman Alexander & Parekh LLP have obtained substantial settlements in class actions for violations of federal securities laws throughout the country. For more information please visit www.yaplaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca