Class Action Commenced by Kaufman Malchman Kirby & Squire, LLP Against Cabletron Systems, Inc.
Tuesday December 9, 8:16 pm Eastern Time
Company Press Release
SOURCE: Cabletron Systems, Inc.
NEW YORK, Dec. 9 /PRNewswire/ -- Kaufman Malchman Kirby & Squire, LLP today released the following:
To: All Persons or Institutions Who Acquired Common Stock of
Cabletron Systems, Inc. Between March 3, 1997 and December 2, 1997:
You are hereby notified that on December 9, 1997, a class action complaint has been filed in the United States District Court for the District of New Hampshire on behalf of all purchasers of Cabletron Systems, Inc. (NYSE: CS - news; ''Cabletron'') common stock between March 3, 1997 and December 2, 1997, inclusive (the ''Class Period'').
The Complaint charges Cabletron and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. Among other things, plaintiff claims that defendants issued releases, statements and reports which misrepresented Cabletron's business prospects and inflated the market price of its common stock throughout the Class Period. The Complaint further alleges that it was the purpose and intent of Cabletron and the individual defendants in issuing the false statements and reports, which contained misrepresentations and omissions, to deprive purchasers of Cabletron stock of the true facts regarding the ability of the Company to manage the production of its newly introduced ''SmartSwitches,'' the ability of the Company to supervise its European sales force, its market share and competitive position, its lag in shifting to new, faster technology for transmitting between networks, and difficulties arising from management changes and new acquisitions.
As a result of defendants' misrepresentations and omissions, Cabletron's stock traded as high as $46.50 per share during the Class Period, before plummeting to below $16 per share when the truth was finally revealed.
Plaintiff seeks to recover damages on behalf of himself and all other purchasers of Cabletron common stock during the Class Period, excluding the defendants and their affiliates, and is represented by Kaufman Malchman Kirby & Squire, LLP. Kaufman Malchman has specialized in complex litigation, including securities and consumer class actions for more than half a century. It has repeatedly demonstrated its expertise in this field, and has been repeatedly recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. Its achievements and quality of service have been chronicled in published decisions, and the firm's efforts have been responsible for significant recoveries, or injunctive relief, for its clients and class members.
If you are a member of the Class described above, you may, not later than 60 days from the date of this notice, move the Court to serve as lead plaintiff of the class, if you choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights, please contact:
Jeffrey H. Squire, Esq.
Ira M. Press, Esq.
KAUFMAN MALCHMAN KIRBY & SQUIRE, LLP
919 Third Avenue
11th Floor
New York, New York 10022
212-371-6600 or Toll Free No. 888-529-4787
kmkslaw@aol.com (e-mail address)
SOURCE: Cabletron Systems, Inc. |
