A class action lawsuit has been filed in the United States District Court for the Central District of California, Southern Division, on behalf of purchasers of Lantronix, Inc. (NASDAQ:LTRX) securities between April 25, 2001 and February 6, 2002, inclusive (the "Class Period"). Those who traded in their Synergetic Micro Systems, Inc. or Premise Systems, Inc. shares for Lantronix shares during the Class Period are also included in the class action.
The complaint alleges that Lantronix, Inc. and certain of its officers and directors violated the federal securities laws by deliberately inflating the price of the Company's stock through a series of false and misleading public statements concerning the Company and its financial results in press releases and reports filed with the Securities and Exchange Commission.
On February 6, 2002, Lantronix issued a press release disclosing that the Company would retroactively record a charge to its 1Q 2002 financial results, miss its forecasts for 2Q 2002, and lower its outlook for 3Q 2002 and fiscal 2002, due to a purported change in its method of accounting for revenue. Shortly thereafter, Lantronix terminated the employment of Steven Cotton, the Company's Chief Financial Officer and Chief Operating Officer.
The complaint alleges that as a result of the defendants' conduct, plaintiff and other members of the Class suffered damages.
Plaintiff seeks to recover damages on behalf of all those who purchased Lantronix common stock during the Class Period, excluding defendants and their affiliates. On January 17, 2003, plaintiffs filed their Amended Class Action Complaint. Defendants have moved to dismiss. On March 26, 2003, plaintiffs responded to these motions.

Update

Litigation of this case has concluded. The case is now in the settlement stage, awaiting an order to distribute checks to the Class Members. Inquiries should be made to the Claims Administrator, Lantronix Securities Litigation, c/o Berdon Claims Administration LLC, P.O. Box 9014, Jericho, NY 11753-8914, Telephone: (800) 766-3330, Website: www.berdonllp.com/claims.