Telecommunications Industry News Sample

Jun 19, 2002 02:08:15

TELECOMMUNICATION SYSTEMS: To Mount Vigorous Defense V. Suits in NY

FREDERICK, Maryland (SunStream News) -- Telecommunication Systems, Inc. faces a securities class action filed in the United States District Court for the Southern District of New York. The suit names as defendants the Company, certain of its current officers and a director, and several investment banks that were the underwriters of the Company’s initial public offering (IPO) The suit, filed on behalf of purchasers of the Company’s common stock during the period August 8, 2000 through December 6, 2000, alleges that the underwriters agreed to allocate common stock offered for sale in the Company’s IPO to certain purchasers in exchange for excessive and undisclosed commissions and agreements by those purchasers to make additional purchases of common stock in the aftermarket at pre-determined prices. The plaintiffs allege that all of the defendants violated Sections 11, 12 and 15 of the Securities Act of 1933, as amended, and that the underwriters violated Section 10(b) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The Company intends to vigorously defend the lawsuit. The Company believes that more than 180 other companies have been named in nearly identical lawsuits that have been filed by some of the same law firms that represent the plaintiffs in the lawsuit against it.

ss/bal

Source: Class Action Reporter

Publication Date: 2002-06-19

 

NWS:	LAW

COY:	TSYS

IND:	TLS

GEO:	n-us-ny

 

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