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Sunday, April 30, 2006

Computer Business Vitesse Semiconductors Sued by Shareholders

A group of shareholders in Vitesse Semiconductor announced recently they are filing a class action lawsuit due to some allegations that it may have released false and illegal financial statement for the period of three months ending with December 31, 2005. Chip supplier Vitesse also is being called into question for the three-year period that ended September 30, 2005.

The lawsuit is being brought forth against the computer business itself as well as against current and former senior managers. The suit will be carried out by the New York-based law firm Rosen. The firm will be representing those that bought stock from June 30, 2003 to April 26, 2006.

Earlier in the week the computer business Vitesse revealed that because of an on-going internal investigation, the financial statements released for the three months ended December 31, 2005 and the three years from September, 2002 to September 30, 2005 should not be trusted. The company also implied that even earlier reports than these could be questionable.

Vitesse also said that other problems have cropped up regarding practices at the company that were connected to credits given to customers for returned products or other types of services and the resulting accounting treatment. Similarly, payments received by the company may not have been credited to the appropriate places.

As a result of the discovery of foul play at the computer business Vitesse, its stock prices fell 27 percent. The company has put several top executive on administrative leave while the lawsuit unfolds.

Blogged By: Computer Consulting 101 Professional Kit