LOS ANGELES, June 21, 2007 LAWFUEL – The Legal Newswire — Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the Central District of California on behalf of a class (the “Class”) consisting of all persons or entities who purchased or otherwise acquired the common stock of Netlist Inc. (Nasdaq:NLST) (“Netlist” or the “Company”) pursuant or traceable to the Company’s November 30, 2006, Initial Public Offering (the “IPO”) through April 16, 2007, inclusive (the “Class Period”).
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at [email protected], or visit our website at www.glancylaw.com.
The Complaint charges Netlist and certain of the Company’s executive officers and directors with violations of federal securities laws.
Among other things, plaintiff claims that defendants’ material omissions and materially false and misleading statements concerning the Company’s business, operations and prospects caused Netlist’s stock price to become artificially inflated, inflicting damages on investors.
Netlist is a designer and manufacturer of high-performance memory subsystems, which are sold to original equipment manufacturers in the server, high-performance computing, and communications markets. The Complaint alleges that defendants failed to disclose, among other things, that: (1) the Company was experiencing the effects of an over-supplied memory chip market, and demand for the Company’s products had deteriorated substantially; (2) due to excessive inventory levels, the Company’s two largest customers would be forced to slash their product orders to return to acceptable levels; (3) the Company’s profit margins were quickly eroding in the memory chip market; (4) the Company lacked adequate internal controls; and (5) as a result of the foregoing, among other things, the Company’s Registration Statement was false and misleading at all relevant times.
On April 16, 2007, Netlist shocked investors when it reported its first quarter 2007 preliminary financial results, which disclosed for the first time that its operating results would be dramatically lower than investors were led to believe, primarily due to an oversupplied dynamic random access memory market, which in turn affected the Company’s product pricing and gross margins. Additionally, the Company revealed that it had experienced a lower than expected demand for high-end products from its largest customers, due to excess inventory which had also significantly reduced demand for the Company’s products. As a result of this news, shares of the Company’s stock declined more than
28 percent, or $1.68 per share, to close on April 17, 2007, at $4.29 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than July 27, 2007, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at
(310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to [email protected]
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca