UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
WALTER WEITZ, on behalf of himself and all
others similarly situated, CIVIL ACTION NO.
Plaintiff, CLASS ACTION COMPLAINT
v. FOR VIOLATIONS OF FEDERAL
SECURITIES LAWS
NETSILICON, INC.; CORNELIUS
PETERSON; DANIEL J. SULLIVAN; CIBC JURY TRIAL DEMANDED
WORLD MARKETS; U.S. BANCORP PIPER
JAFFRAY INC.; and J.P. MORGAN CHASE &
CO.,
Defendants.
Plaintiff, individually and on behalf of all other persons similarly situated, by
attorneys, for plaintiff's Complaint, allege upon the investigation made by and through plaintiff's
which included, inter alia, a review of relevant filings made by NETsilicon, Inc. ("NETsilicon" or
"Company") with the Securities and Exchange Commission, as well as, tele-conferences, press
news articles, analyst reports, and media reports concerning the Company. Furthermore, this
is based upon plaintiff's personal knowledge as to plaintiff and plaintiff's own acts, and upon
and belief as to all other matters, based upon the aforementioned investigation.
NATURE OF THE ACTION
1. This is a class action on behalf of all persons, other than defendants and
parties, who purchased, converted, exchanged or otherwise acquired NETsilicon common stock, as
defined below, including, but not limited to, during the period from September 15, 1999 through
6, 2000 (the "Class Period") to recover damages caused by defendants' violations of the federal
law.
2. In the wake of the raging bull market of the 1990's lies a series of
malfeasance by major Wall Street securities firms. As reported in national news sources such as
York Times, The Wall Street Journal, and Fortune Magazine, prosecutors in New York and
enforcement officials at the Securities and Exchange Commission ("SEC") are examining at least two
separate situations - - each questions the integrity and fairness of the capital markets of the
SNIPPETS:
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
Plaintiff, individually and on behalf of all other persons similarly situated, by plaintiff's
which included, inter alia, a review of relevant filings made by NETsilicon, Inc.
"Company") with the Securities and Exchange Commission, as well as, tele-conferences, press
news articles, analyst reports, and media reports concerning the Company.
This is a class action on behalf of all persons, other than defendants and certain related
2000 (the "Class Period") to recover damages caused by defendants' violations of the federal
In the wake of the raging bull market of the 1990's lies a series of investigations into
malfeasance by major Wall Street securities firms.
investment banks charged issuers of new securities excessive commissions and inflated
Second, investigators are examining, and have evidence, that major investment banks
allocated shares of especially hot initial public offerings to favored,
for promises by these customers that they would purchase additional shares of the IPOs in the
the IPO boom include Morgan Stanley Dean Witter and Goldman Sachs Groups,
and maintain the price of the IPOs in the aftermarket once the initial distribution period
stock price, above the offering price, and create a false sense of demand that would attract
obtain allocations of stock on the offering - - but before the first after-market trade.
Securities Act of 1933 15 U.S.C. §§ 77k, 77land 77o and Sections 10and
including the preparation and dissemination in this judicial district of the Prospectus
misleading, during the Class Period (including the trading of NETsilicon stock based upon
the underwriter defendants conduct substantial business in this district.
control to cause the Company to engage in the violations and improper practices complained of
5,250,000 shares of common stock at $7 per share pursuant to a Prospectus dated September 15,
of the reports and press releases alleged herein to be materially false and/or misleading
In direct contravention to Rules 101 and 102 of Regulation M of the Exchange Act,
direct participation and agreement of NETsilicon and the Individual Defendants.
or did not disclose the following material facts,
violation of Regulation M, which governs market manipulation.
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