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Bob, will this weigh it down....Press Release for Novatel Wireless Inc


Milberg Weiss Announces Class Action Suit Against Novatel Wireless Inc. and Certain Underwriters of its Initial Public Offering
12/26/2001 4:48:00 PM
NEW YORK, Dec 26, 2001 (BUSINESS WIRE) -- The Plaintiffs' Executive Committee in In re: Initial Public Offering Securities Litigation, 21 MC 92 (SAS) announces that a class action lawsuit was filed on November 20, 2001, on behalf of purchasers of the securities of Novatel Wireless Inc. ("Novatel" or the "Company") (NVTL) between November 15, 2000 and December 6, 2000, inclusive.

A copy of the complaint filed in this action is available from the Court or can be obtained from Milberg Weiss' website at http://www.milberg.com/novatel

The action is pending in the United States District Court, Southern District of New York, located at 500 Pearl Street, New York, NY against defendants Novatel, John Major (CEO and Chairman), Ambrose Tam (President, COO, CTO), Melvin Flowers (CFO) and underwriters Credit Suisse First Boston Corp., Bear, Stearns & Co. Inc., FleetBoston Robertson Stephens Inc. and Salomon Smith Barney Inc. (the "Underwriter Defendants").

The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about November 15, 2000, Novatel commenced an initial public offering of 7,000,000 of its shares of common stock at an offering price of $8 per share (the "IPO"). In connection with the IPO, Novatel 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) the Underwriter Defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriter Defendants allocated to those investors material portions of the restricted number of Novatel shares issued in connection with the IPO; and (ii) the Underwriter Defendants had entered into agreements with customers whereby the Underwriter Defendants agreed to allocate Novatel shares to those customers in the IPO in exchange for which the customers agreed to purchase additional Novatel shares in the aftermarket at pre-determined prices.

If you bought the securities of Novatel between November 15, 2000 and December 6, 2000, you may, no later than February 25, 2002 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.

This action is being prosecuted by the Plaintiffs' Executive Committee of In re: Initial Public Offering Securities Litigation, 21 MC 92 (SAS). By Order, dated October 12, 2001, the Honorable Shira A. Scheindlin appointed the following firms to serve as the Plaintiffs' Executive Committee: Bernstein Liebhard & Lifshitz, LLP, Milberg Weiss Bershad Hynes & Lerach LLP, Schiffrin & Barroway LLP, Sirota & Sirota LLP, Stull, Stull & Brody and Wolf Haldenstein Adler Freeman & Herz LLP. The Plaintiffs' Executive Committee has been vested by the Court with the responsibility for the prosecution of the IPO Securities Litigation.

If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:

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