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Rambus, Inc. Stockholders Lawsuit Filed |
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A class action has been filed against Rambus, Inc. (RMBS), certain of its officers and directors by stockholders who purchased the company's common stock between December 12, 2001 and June 27, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
According to a press release dated July 19, 2006, the complaint alleges that Rambus and certain officers and directors violated Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements and omissions concerning Rambus' improper and undisclosed practice of backdating options conferred on certain executives which made it appear that such options were issued on dates when the market price of Rambus stock was higher than the actual market price on the actual grant dates. This improper backdating masked the virtually instant profits the option recipients obtained. Under generally accepted accounting principles, these profits were required to be recognized as an expense in the Company's financial statements for the appropriate period, but were not. This backdating of options also violated provisions of the Internal Revenue Code relating to deduction of option payments. Thus, the Company's financial statements in Form 10-K filings for the years 2002, 2003, 2004 and 2005 were materially false and misleading. In addition, the Company's Proxy Statements for annual shareholder meetings held in years 2002 to 2005 were materially false and misleading because they contained statements concealing Rambus' practice of backdating stock options.
If you bought Rambus, Inc. securities between December 12, 2001 and June 27, 2006, inclusive, and would like to obtain information about the Rambus, Inc. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.
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