In Brief: Vitesse receives securities lawsuit

An investor has sued Vitesse Semiconductor Corporation accusing the company of securities-law violations, the investor's legal defense announced Wednesday.

The class-action lawsuit filed by Berman DeValerio Pease Tabacco Burt & Pucillo in the U.S. District Court for the Central District of California seeks damages for violations of federal securities laws on behalf of all investors who acquired Vitesse securities from October 23, 2003, through and including April 26, 2006.

In the suit it claims "Vitesse and three individual defendants violated the federal securities laws by issuing materially false and misleading statements during the Class Period that artificially inflated the Company's stock price."

According to an investigation and announcements made by Vitesse this year, the plaintiff's claim deems that the defendants failed to properly account for credits issued to or requested by customers, properly apply payments received to the appropriate account receivable, and properly account for the stock options granted to senior officers and directors.

Copyright 2006 by United Press International

Citation: In Brief: Vitesse receives securities lawsuit (2006, May 3) retrieved 26 June 2019 from https://phys.org/news/2006-05-vitesse-lawsuit.html
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