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(COMTEX) Notice of Class Action Ascend Communications
Notice of Class Action Ascend Communications
NEW YORK (Dec. 3) BUSINESS WIRE -Dec. 3, 1997--Ascend Communications,
Inc. (Symbol:ASND) and some of its directors and officers were named as
defendants in a class action lawsuit filed in the United States
District Court, Central District of California, Civil Action No.
97-8861 MRP (ANx), on behalf of purchasers of the Company's securities
between November 5, 1996 through September 30, 1997 (the "Class
Period").
The Complaint charges defendants with violating federal securities and
state laws, including Section 10(b) of the Securities Exchange Act of
1934 and Section 11 of the Securities Act of 1933, by engaging in an
illegal scheme and deceptive course of conduct designed to inflate
Ascend's stock price through positive statements concerning Ascend's
business, earnings and its growth prospects, despite the fact that, at
the time the statements were made, defendants knew, or recklessly
disregarded, but failed to disclose to investors, that sales of
Ascend's advanced modem products would all but cease because of, among
other things, serious software and firmware problems. The defendants'
scheme allowed Ascend's officers and directors to sell their Ascend
shares at enormous gains, exceeding $40 million in proceeds. In
addition, the defendants' course of conduct allowed Ascend to
consummate a merger transaction during the Class Period with Cascade
Communications, Inc. by exchanging overvalued Ascend stock for the
stock of Cascade.
Plaintiffs seek to recover damages on behalf of a class of purchasers
of Ascend stock during the Class Period and a sub-class of Cascade
shareholders who exchanged their shares for Ascend stock pursuant to
the merger. The plaintiffs are represented by Weiss & Yourman and
Stull Stull & Brody, law firms having significant experience and
expertise prosecuting class actions on behalf of investors and
shareholders in federal and state courts throughout the United States.
The firms maintain offices in New York City and Los Angeles. The firms
have repeatedly been appointed by courts as lead counsel in numerous
complex litigations and have recovered hundreds of millions of dollars
on behalf of investors.
If you are a member of the class described above, you may, not later
than sixty (60) days from today, move the court to serve as lead
plaintiff of the class, if you so choose. To assure that you will be
included in a list of class members, or if you wish to discuss this
action, have any questions concerning this notice, or your rights or
interests with respect to this matter, or if you have any information
you wish to provide to us, please contact David C. Katz by calling
toll-free (888) 593-4771, or via Internet electronic mail at
wynyc@aol.com or by writing Weiss & Yourman, The French Building, 551
Fifth Avenue, Suite 1600, New York City 10176, or Michael D. Braun by
calling toll-free (888) 388-4605, or via Internet electronic mail at
Braunatssb@aol.com or by writing Stull Stull & Brody, 10940 Wilshire
Blvd., Suite 2300, Los Angeles, CA 90024.
-0- al/ny*
CONTACT: David C. Katz
(888) 593-4771
Internet electronic mail at wynyc@aol.com
or
Michael D. Braun
(888) 388-4605
Internet electronic mail at Braunatssb@aol.com
KEYWORD: NEW YORK INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
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