Credit Suisse First Boston Corp. : Various Technology Companies' Securities Summary: According to a Press Release dated March 7, 2003, the complaint alleges that defendants violated federal and state securities, committed common law fraud, and made negligent misrepresentations by the following:
Specifically the complaint alleges that Credit Suisse First Boston Corporation and its employees (collectively hereinafter, 'CSFBC') allegedly pursued a conspiracy and acted in concert with each of the Companies and their above listed employees (collectively, the 'Company Defendants'), in furtherance of a common plan, scheme, or design to manipulate each Company's stock price, so that, inter alia, they could each profit from the manipulations. CSFBC was the nexus and central actor in the conspiracy, allegedly engaged in this fraudulent scheme as part of its regular course of business, and separately involved each of the Company Defendants in the alleged unlawful practices.
The press release says that the alleged fraud, in its essence, has two components: First, CSFBC and each Company Defendant effectuated an initial public offering ('IPO') for each Company at a per-share offering price that was knowingly inaccurate. In addition, the sales staff of Credit Suisse First Boston and/or Credit Suisse First Boston Corporation made disclosures of the fact of the inaccuracy of the IPO pricing to only selected members of the investing public. Second, CSFBC and each Company Defendant allegedly knowingly disseminated false expectations about the Company's prospective financial performance, including false reports of the Company's expected revenues and earnings.
The fraudulent statements arose in several instances, but principally in each Company's IPO prospectus and in the research reports published by CSFBC about that Company during the class period indicated above for each Company. Each Company's IPO prospectus contained statements listing principal factors considered in determining the public offering price. These statements omitted to state the material facts of the inaccurate pricing and the sales staff disclosures indicated above.
CSFBC published research reports for each Company that contained statements discussing the forecasted revenues and earnings for that Company, including a projected income statement for that Company. These statements failed to reveal, however, the material fact that the forecasted quarterly and annual revenues were set by the Company Defendants and CSFBC with the end of creating the appearance of unpredictable revenue growth. Those statements were misleading since they purported to accurately present the objective beliefs of their authors.
The class consists of shareholders who purchased or otherwise acquired the common stock (but excluding purchasers of each company's initial public offering) of any of the following companies during the following time periods:
SIC Code: 6211
Industry: Investment Services
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