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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: margin_man who wrote (31457)	5/19/1999 10:16:00 AM
From: DWCraig	Read Replies (1) \| Respond to of 36349

From the Motley Fool this morning: "Telecom-equipment maker PairGain Technologies (Nasdaq: PAIR) disclosed in an SEC filing that the company and two top officers, including Chairman Charles Strauch, have been identified as targets of a federal criminal investigation into losses by a Beverly Hills money-management firm. " This is misleading. It makes it sound as if this comes as a complete surprise. Any quick glance at past filings would show that the company has provided disclosure of this investigation all along. So much for journalistic integrity. The following may be found at freedgar.com 5/17/99 10Q: Item 1. Legal Proceedings As discussed in Item 3. Legal Proceedings in the Company's Annual Report on Form 10-K for the year ended December 31, 1998, the U.S. Attorney's office and the Securities and Exchange Commission have been investigating S. Jay Goldinger and Capital Insight, Inc. in connection with their 1995 loss of nearly $100 million of their clients' funds, including $15.8 million of PairGain's funds. The U.S. Attorney and the SEC are also investigating whether PairGain and some of its past and present officers and employees engaged in any wrongdoing with respect to PairGain's investment of its excess cash with Capital Insight, the disclosure of such investments and the disclosure of losses incurred. By letter dated May 11, 1999, we received notification that the U.S. Attorney views PairGain, Charles S. Strauch, our Chairman, and Charles W. McBrayer, our Chief Financial Officer, as targets of its criminal investigation. The letter further states that no final decision has been made whether to pursue charges against PairGain, Mr. Strauch or Mr. McBrayer by the U.S. Attorney. See Item 1. Legal Proceedings in PairGain's Quarterly Report on Form 10-Q for the first quarter ended March 31, 1998 for disclosure regarding Harris Corporation's suit against PairGain and others. In May 1999, PairGain and Harris reached a settlement agreement related to this matter. See Note 9 of Notes to Condensed Consolidated Financial Statements in this quarterly report. PairGain is involved from time to time in litigation incidental to our business. We believe that none of our pending litigation matters, individually or in the aggregate, will have a material adverse effect on our financial position or results of operations. 11/13/98 10Q: Item 1. Legal Proceedings As previously reported in Item 3. Legal Proceedings in the Company's Annual Report on Form 10-K/A for the year ended December 31, 1997, the U.S. Attorney's office and the Securities and Exchange Commission have been investigating S. Jay Goldinger and Capital Insight, Inc. in connection with their 1995 loss of nearly $100 million of their clients' funds, including $15.8 million of PairGain's funds. The U.S. Attorney and the SEC are also investigating whether PairGain and some of its past and present officers and employees engaged in any wrongdoing with respect to PairGain's investment of its excess cash with Capital Insight, the disclosure of such investments and the disclosure of losses incurred. There were no changes to these matters during the period ended September 30, 1998. See Item 1. Legal Proceedings in the Company's Quarterly Report on Form 10-Q for the first quarter ended March 31, 1998 for disclosure regarding Harris Corporation's suit against the Company and others. There were no changes to these matters during the period ended September 30, 1998. The Company is involved from time to time in litigation incidental to its business. The Company believes that none of its pending litigation matters, individually or in the aggregate, will have a material adverse effect on its financial position or results of operations. 8/12/98 10 Q: Item 1. Legal Proceedings As previously reported in Item 3. Legal Proceedings in the Company's Annual Report on Form 10-K/A for the year ended December 31, 1997, the U.S. Attorney's office and the Securities and Exchange Commission have been investigating S. Jay Goldinger and Capital Insight, Inc. in connection with their 1995 loss of nearly $100 million of their clients' funds, including $15.8 million of PairGain's funds. The U.S. Attorney and the SEC are also investigating whether PairGain and some of its past and present officers and employees engaged in any wrongdoing with respect to PairGain's investment of its excess cash with Capital Insight, the disclosure of such investments and the disclosure of losses incurred. There were no changes to these matters during the period ended June 30, 1998. See Item 1. Legal Proceedings in the Company's Quarterly Report on Form 10-Q for the first quarter ended March 31, 1998 for disclosure regarding Harris Corporation's suit against the Company and others. There were no changes to these matters during the period ended June 30, 1998. The Company is involved from time to time in litigation incidental to its business. The Company believes that none of its pending litigation matters, individually or in the aggregate, will have a material adverse effect on its financial position or results of operations.