According to a press release dated June 14, 2005, the Complaint alleges that Magma and certain of its officers and directors violated federal securities laws. Specifically, defendants failed to disclose that Magma faced the serious risk of infringing on intellectual property rights of competitor Synopsys because inventions that were critical to Magma's business, and which were patented by Magma, were designed by Magma's chief scientist while employed by Synopsys. Defendants aggressively denounced the allegations, characterizing them as completely baseless. While Magma's stock price was artificially inflated, insiders sold 4,436,163 shares of common stock reaping gross proceeds of $82,385,174.

The complaint further alleges that on or around April 13, 2005, the market learned that Magma's Chief Scientist admitted, in a sworn declaration filed in the Synopsys infringement action, that inventions covered by two of Magma's patents were conceived by him while he was employed by Synopsys and that his supervisor at Magma, and likely others, knew that the inventions covered by the patents were conceived by him at Synopsis and were encompassed by an agreement with Synopsis granting Synopsis the rights to those inventions. On this news, Magma's stock plummeted 40.7%, from $9.42 per share on April 12, 2005 to $5.58 per share on April 13, 2005.

Also included are all those who acquired Magma's shares through its acquisitions of Majave, Random Logic, Aplus Design or Silicon Metrics.

If you bought Magma Design Automation, Inc. securities between October 23, 2002 and April 12, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.