Notice of Class Action Against Ascend Communications, Inc. (12-22-97)
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Monday December 22, 8:33 am Eastern Time
Company Press Release
Notice of Class Action Against Ascend Communications, Inc.
LOS ANGELES--(BUSINESS WIRE)--December 22, 1997--Ascend Communications, Inc. (NASDAQ: ASND - news)
and numerous of its directors and officers were named as defendants in a class action lawsuit that was filed on December 19,
1997 in the United States District Court, Central District of California, Civil Action No. 97-9376-SVW-JGx, on behalf of
stockholders who purchased the Company's securities between November 5, 1996 and September 30, 1997 (the ''Class
Period'').
The complaint alleges that through the dissemination of false and misleading statements concerning Ascend's business, earnings
and growth prospects, the defendants engaged in an illegal scheme and deceptive course of conduct designed to inflate
Ascend's stock price in violation of federal and state securities laws, including Section 10(b) of the Securities Exchange Act of
1934 and Section 11 of the Securities Act of 1933. The complaint further alleges that the defendants engaged in a fraudulent
scheme despite the fact that, at the time the fraudulent and/or misleading statements were made, the 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 complaint maintains that the defendants'
fraudulent scheme allowed Ascend's officers and directors to sell their Ascend shares and amass over $40 million in insider
trading proceeds and also allowed Ascend to consummate a merger with Cascade Communications, Inc. during the Class
Period whereby Ascend exchanged overvalued stock for Cascade stock.
The plaintiffs seek to recover damages on behalf of a class of purchasers who bought Ascend stock during the Class Period, as
well as a sub-class of Cascade shareholders who exchanged their shares for Ascend stock pursuant to the Ascend/Cascade
merger.
The plaintiffs are represented by Weiss & Yourman and Stull Stull & Brody, law firms which have extensive experience and
expertise prosecuting class actions on behalf of investors and shareholders in federal and state courts throughout the United
States. Both firms have been appointed as lead counsel by courts in numerous complex litigations and have recovered hundreds
of millions of dollars on behalf of investors. Weiss & Yourman and Stull Stull & Brody maintain offices in New York City and
Los Angeles.
If you are a member of the class described above, you may, if you so choose, move the court to serve as lead plaintiff of the
class no later than sixty (60) days from today. To assure that you will be included in a list of class members, or have any
questions concerning this notice, your rights or interests with respect to this matter, or if you have any information you wish to
provide either firm, 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. |
