Advertisement

TECHNOLOGY & TELECOMMUNICATIONS

From Times Staff and Wire Reports

Shareholder Sues Irvine Computer Firm: An investor in Rainbow Technologies Inc. filed a class-action lawsuit against the Irvine maker of computer security products, accusing it and eight top executives of defrauding shareholders. The suit, led by shareholder Charles Gruver, charges that Walter Straub, Rainbow’s chairman, and the others were “unqualifiedly optimistic” about the company’s future when they knew or should have known about its weaknesses. At the same time they were inflating the company’s value, the suit claims, they were pocketing “huge profits” by selling 134,800 shares for $3.2 million. The company would not comment on the lawsuit. Rainbow’s stock fell $5 to $20.50 a share in October, when it announced that quarterly earnings would be less than expected. Its stock closed Tuesday at $18.50 a share, up 25 cents.


Advertisement
Advertisement