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July 19, 2006 -- Notice is hereby given that a lawsuit has been filed in the U.S. District Court for the Northern District of California on July 17, 2006 under case number C06-04346 (WHA) by the law firm of Kantrowitz, Goldhamer & Graifman, P.C. and its co-counsel on behalf of a plaintiff and a proposed class of purchasers of securities of Rambus, Inc. (NASDAQ: RMBS) ("Rambus" or "Company") during the period December 12, 2001 through June 27, 2006, inclusive (the "Class Period").
The complaint alleges that Rambus and certain officers and directors violated Sections 10(b), 14(a) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements and omissions concerning Rambus' improper and undisclosed practice of backdating options conferred on certain executives which made it appear that such options were issued on dates when the market price of Rambus stock was higher than the actual market price on the actual grant dates. This improper backdating masked the virtually instant profits the option recipients obtained. Under generally accepted accounting principles, these profits were required to be recognized as an expense in the Company's financial statements for the appropriate period, but were not. This backdating of options also violated provisions of the Internal Revenue Code relating to deduction of option payments. Thus, the Company's financial statements in Form 10-K filings for the years 2002, 2003, 2004 and 2005 were materially false and misleading. In addition, the Company's Proxy Statements for annual shareholder meetings held in years 2002 to 2005 were materially false and misleading because they contained statements concealing Rambus' practice of backdating stock options.
Plaintiff seeks to recover damages on his own behalf and on behalf of the Class and is represented by the law firm of Kantrowitz, Goldhamer & Graifman, P.C. The firm has significant experience successfully prosecuting complex securities fraud class actions on behalf of defrauded investors.
If you engaged in transactions of Rambus securities during the Class Period, you may, not later than sixty (60) days from July 19, 2006, move the court to serve as lead plaintiff if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
To view the Complaint in this action If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact: Gary S. Graifman at Kantrowitz, Goldhamer & Graifman, P.C. toll-free at 800-660-7843 or via e-mail at ggraifman@kgglaw.com or by writing to:
Kantrowitz, Goldhamer & Graifman, P.C.
747 Chestnut Ridge Road,
Chestnut Ridge, New York 10977
