Lawsuit Filed re Extreme's IPO

Class Action suit filed against underwriters Morgan Stanley, BancBoston Robertson Stephens and Lehman Bros

July 6, 2001

2 Min Read

The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Extreme Networks Inc. (Nasdaq: EXTR) ("Extreme Networks" or the "Company") securities during the period between April 8, 1999 and December 6, 2000, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at

The complaint charges defendants Morgan Stanley & Co., Incorporated ("Morgan Stanley"), BancBoston Robertson Stephens, Inc. ("Robertson Stephens"), and Lehman Brothers Inc. ("Lehman Brothers") with violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about April 8, 1999, Extreme Networks commenced an initial public offering of 7 million of its shares of common stock at an offering price of $17 per share (the "Extreme Networks IPO"). In connection therewith, Extreme Networks filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that (i) defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendants allocated to those investors material portions of the restricted number of Extreme Networks shares issued in connection with the Extreme Networks IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate Extreme Networks shares to those customers in the Extreme Networks IPO in exchange for which the customers agreed to purchase additional Extreme Networks shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings.

If you bought the securities of Extreme Networks between April 8, 1999 and December 6, 2000, inclusive, you may, no later than September 4, 2001 request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Cauley Geller Bowman & Coates, LLP, or other counsel of your choice, to serve as your counsel in this action. If you are a member of this class, you can join this class action online at

Cauley Geller Bowman & Coates, LLP

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