MILBERG WEISS BERSHAD
HYNES & LERACH LLP
WILLIAM S. LERACH (68581)
ALAN SCHULMAN (128661)
BLAKE M. HARPER (115756)
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058
SCHIFFRIN & CRAIG, LTD.
RICHARD S. SCHIFFRIN
MICHAEL D. CRAIG
Three Bala Plaza East
Suite 400
Bala Cynwyd, PA 19004
Telephone: 610/667-7706
Attorneys for Plaintiff
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
ROBERT HOCKEY, On Behalf of Himself ) Civ. No. C-96-0815 MHP
and All Others Similarly Situated, )
) CLASS ACTION
Plaintiff, )
)
vs. )
)
AJIT K. MEDHEKAR, SID AGRIWAL, C.N. ) COMPLAINT FOR VIOLATION OF
REDDY, C.N. REDDY INVESTMENTS, ) THE SECURITIES EXCHANGE ACT
INC., N. DAMODAR REDDY, N.D.R. ) OF 1934
INVESTMENTS, INC., RONALD K. )
SHELTON and ALLIANCE SEMICONDUCTOR )
CORP., )
)
Defendants. ) Plaintiff Demands A
____________________________________) Trial By Jury
SUMMARY OF ACTION
1. This is a class action on behalf of all persons who
purchased the common stock of Alliance Semiconductor Corp.
("Alliance" or the "Company") between July 11, 1995 and
December 29, 1995 (the "Class Period"), complaining of a fraudulent
scheme and course of business that operated as a fraud or deceit on
SNIPPETS:
Three Bala Plaza East Suite 400 Bala Cynwyd, PA 19004 Telephone: 610/667-7706 Attorneys for
AJIT K. MEDHEKAR, SID AGRIWAL, C.N.) COMPLAINT FOR VIOLATION OF REDDY, C.N. REDDY
SHELTON and ALLIANCE SEMICONDUCTOR)
This is a class action on behalf of all persons who purchased the common stock of Alliance
purchasers of Alliance common stock due to defendants' false and misleading statements about
Anticipating a cyclical decline in the semiconductor industry, which would result in falling
r stock for 90 days, i.e., until June 28, 1995.
However, on July 11, 1995, Alliance reported very strong first quarter fiscal 1996 results,
pocketing $31.3 million and completing their selling on September 8, 1995, just before word
But, then suddenly, in late December 1995, Alliance revealed, contrary to its prior
falls
After Alliance was formed in the mid-1980's by N. Damodar Reddy ("N.D.
In connection with the Offering, those insiders had been required to agree to what is known
During most of this time, Alliance's insiders were telling securities analysts to increase
million -- a decline of 40% from the prior quarter; net income of only $2.2 million -- a
After these revelations, Alliance stock collapsed to as low as $9 per share, compared to its
The positive statements about Alliance's business made by defendants during the Class Period
Alliance was encountering weakening of demand for certain of its SRAM products, especially
extent for any of its important products as it was, in fact, encountering softening prices with
Jurisdiction exists pursuant to §27 of the Exchange Act,
forecasts and reports of actual operations compared thereto), conversations and connections
Investments") is N.D. Reddy's whollyowned investment company and a vehicle for owning and
The individuals named as defendants in -are referred to herein as the "Individual Defendants."
* Alliance was successfully transitioning its business to 3.3V and 1 Mbit SRAM's, where
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