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Class action lawsuit against investment banks in connection with Handspring's IPO

Fri Aug 3, 2001 - 3:14 PM EDT - By Marcus Adolfsson


The Law Firm of Cauley Geller Bowman & Coates announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Handspring securities during the period between June 21, 2000 and December 6, 2000.

A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website.

The complaint charges defendants Credit Suisse First Boston Corporation and Merrill Lynch, Pierce, Fenner & Smith Incorporated with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

On or about June 21, 2000, Handspring commenced an initial public offering of 10 million of its shares of common stock at an offering price of $20 per share. In connection therewith, Handspring filed a registration statement, which incorporated a prospectus, with the SEC.

The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that (i) defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendants allocated to those investors material portions of the restricted number of Handspring shares issued in connection with the Handspring IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate Handspring shares to those customers in the Handspring IPO in exchange for which the customers agreed to purchase additional Handspring shares in the aftermarket at pre-determined prices.


 

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