Mailinglist Archive: opensuse (3261 mails)

["Purple Shirt" <purpleshirt@xxxxxxxxxxx>]

haha. I am RedHat shareholder and I can just laugh about this.

Notice how this suit is in the works as we are in an economic downturn but 
nobody ever brought this up when the shares for 6 months were on a rise (aug 
99 to dec 00). because back then nobody felt poor.

I am not saying I agree with laddering but I hate how they sue a company for 
making a bad personal investment.

mk

> From: Jerry Kreps <jerrykreps@xxxxxxxxxxx>
> To: suse-linux-e@xxxxxxxx
> Subject: [SLE] Fwd: Class action against Red Hat
> Date: Sat, 31 Mar 2001 20:17:08 -0600
>
>
> ======= Forwarded message (begin) =======
> Subject: Class action against Red Hat
> Date: Sat, 31 Mar 2001 04:18:46 GMT
> From: gipe@xxxxxxxxxxxxxxxxxxxxxx (Gilles Pelletier)
>
> In exchange for the excessive commissions, the complaint alleges, lead
> underwriter The Goldman Sachs Group, Inc. and underwriters Credit
> Suisse First Boston Corp. and Merrill Lynch, Pierce, Fenner & Smith,
> Inc. allocated Red Hat shares to customers at the IPO price of $14 per
> share. To receive the allocations (i.e., the ability to purchase
> shares) at $14, the defendant underwriters' brokerage customers had to
> agree to purchase additional shares in the aftermarket at
> progressively higher prices. The requirement that customers make
> additional purchases at progressively higher prices as the price of
> Red Hat stock rocketed upward (a practice known on Wall Street as
> ``laddering'') was intended to (and did) drive Red Hat's share price
> up to artificially high levels. This artificial price inflation, the
> complaint alleges, enabled both the underwriters and their customers
> to reap enormous profits by buying stock at the $14 IPO price and then
> selling it later for a profit at inflated aftermarket prices, which
> rose as high as $56.75 during its first day of trading.
>
> Rather than allowing their customers to keep their profits from the
> IPO, the complaint alleges, the defendant underwriters required their
> customers to ``kick back'' some of their profits in the form of secret
> commissions. These secret commission payments were sometimes
> calculated after the fact based on how much profit each investor had
> made from his or her IPO stock allocation.
>
> http://biz.yahoo.com/bw/010329/2557.html
>
> ---
>
> Come on! Everybody knows uncle Bob is a clean as a newborn baby...
> Hum... I believe they're not very clean, are they?
>
> GP
> --
> La Masse Critique
> Rencontrez Néfertiti, Einstein, Tocqueville, etc.
>
> Qu'est-ce que le sionisme?
> http://pages.infinit.net/mcrit/sionisme.html
> =======  Forwarded message (end)  =======
>
>
>
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