INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP IS INVESTIGATING A POTENTIAL SHAREHOLDER CLASS ACTION AGAINST RAMBUS, INC.
New York, NY July 31, 2006 - Murray, Frank & Sailer LLP is investigating a potential class action on behalf of shareholders who purchased or otherwise acquired the securities of Rambus, Inc. (“Rambus” or the “Company”) (NASDAQ: PRX) between December 12, 2001 through July 18, 2006, inclusive (the “Class Period”).
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The complaint would allege 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 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.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Rambus securities on any world exchange between December 12, 2001 through July 18, 2006, and sustained damages, you may be eligible to be a plaintiff in the action. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]