NEW YORK, June 29, 2007 LAWFUEL – The Class Actions Newswire — Pomera…

NEW YORK, June 29, 2007 LAWFUEL – The Class Actions Newswire — Pomerantz Haudek Block
Grossman & Gross LLP (www.pomerantzlaw.com) (“Pomerantz”) has filed a
class action lawsuit in the United States District Court, Central
District of California, against Netlist Inc. (“Netlist” or the
“Company”) (Nasdaq:NLST) and certain officers, on behalf of purchasers
of the common stock, who purchased or otherwise acquired common stock
pursuant or traceable to the Company’s November 30, 2006 Initial Public
Offering (the “IPO” or the “Offering”) through April 16, 2007,
inclusive (the “Class Period”). The complaint alleges violations of
Section 11, 12 (a) (2), and 15of the Securities Exchange Act.

Netlist is headquartered in Irvine, California. The Company is a
designer and manufacturer of high performance memory subsystems, which
are sold to original equipment manufacturers (“OEMs”) in the server,
high performance computing and communications markets. The Complaint
alleges that, in connection with the Company’s IPO, defendants failed
to disclose or indicate that, among other things, (1) the Company’s
growth and operational strategies were materially flawed; (2) the
Company was already experiencing the effects of an oversaturated memory
chip market, and that demand for the Company’s products had
deteriorated substantially; (3) the Company’s products were not unique
or well positioned in the market; (4) the Company encouraged its
largest customers to order and maintain excess inventory so that the
Company would appear financially stable; and (5) due to these excessive
inventory levels, the Company’s profit margins were quickly eroding in
the memory chip market.

In particular, on November 30, 2006 the Company conducted a successful
IPO, raising $43.70 million by selling 6.25 million shares of stock to
the public for $7.00 per share. Pursuant to the IPO, Company insiders,
were eligible to sell up to 937,500 shares of Company stock, of which
they initially planned to sell 812,500 shares, or 86 percent of the
available allotment. At the time of the IPO, the insiders sold all
937,500 shares, for gross proceeds of over $6.5 million. On April 16,
2007 the Company disclosed that its operating income would be
dramatically lower due to an oversupplied dynamic random access memory
market, which in turn affected the Company’s pricing and gross margins
on its products. Additionally, the Company revealed that it had
experienced a lower than expected demand from its largest customers for
its high-end products, due to excess inventory concerns, 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.

If you are a shareholder who purchased the securities of Netlist during
the Class Period, you have until July 27, 2007 to ask the Court to
appoint you as lead plaintiff for the class. Lead plaintiffs must meet
certain legal requirements. Shareholders outside the United States may
join the action, regardless of where they live or which exchange was
used to purchase the securities. If you wish to review a copy of the
Complaint, to discuss this action, or have any questions, please
contact Teresa L. Webb ([email protected]) or Carolyn S. Moskowitz
([email protected]) of the Pomerantz Firm at 888.476.6529 (or
888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to
include their mailing address and telephone number.

The Pomerantz Firm, which has offices in New York, Chicago Washington,
D.C. and the San Francisco Bay area, is acknowledged as one of the
premier firms in the areas of corporate, securities, and antitrust
class litigation. Founded by the late Abraham L. Pomerantz, known as
the dean of the class action bar, the Pomerantz Firm pioneered the
field of securities class actions. Today, more than 70 years later, the
Pomerantz Firm continues in the tradition he established, fighting for
the rights of the victims of securities fraud, breaches of fiduciary
duty, and corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. For more
information about the Firm, visit our web site at www.pomlaw.com.

More information on this and other class actions can be found on the
Class Action Newsline at www.primenewswire.com/ca

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