| Company: | Ikanos Communications, Inc. |
| Ticker Symbol: | NASD: IKAN |
| Class Period: | IPO - September 22, 2005 or March 8, 2006 |
| Date Filed: | Nov-06-06 |
| Lead Plaintiff Deadline: | Jan-04-07 |
| Court: | Southern District, NY |
| Allegations: |
A class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of investors of Ikanos Communications, Inc. ("Ikanos" or the "Company") (NASDAQ:IKAN) who purchased the common stock of Ikanos pursuant and/or traceable to the Company's Registration Statement and Prospectus for its initial public offering on September 22, 2005, (the "IPO") or its secondary public offering (the "Secondary Offering") on March 8, 2006, seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act").
The complaint charges Ikanos and certain of its officers, directors and underwriters with violations of the Securities Act of 1933. Ikanos engages in the development and provision of programmable semiconductors that enable fiber-fast broadband services over telephone companies' existing copper lines. The Company offers very-high-bit-rate digital subscriber lines that are designed to address different segments of the broadband semiconductor market for carrier networks and subscriber premises equipment.
The Complaint alleges that the Registration Statements and Prospectuses issued in connection with the IPO and Secondary Offering were negligently prepared and, as a result, contained untrue statements of material facts; omitted to state other facts necessary to make the statements made therein not misleading; and were not prepared in accordance with the rules and regulations governing their preparation. Specifically, the Complaint alleges, among other things, that the Registration Statements and Prospectuses included representations that the Company's business had grown due to successful deployments in Japan. In fact, according to the Complaint, the deployments in Japan had grown because Ikanos had shipped excessive product to Japanese customers in excess of those customers' needs and the Registration Statements and Prospectuses failed to disclose that the Company's future results would be adversely affected by this practice.
On October 4, 2006, Ikanos issued a press release announcing preliminary third quarter revenue results and stated that the revenue expectations were $4-6 million lower than expected, and the fourth quarter revenue results would be adversely affected due to, among other things, "carriers in Japan [] currently working through their existing equipment levels." On this news, the stock collapsed to as low as $7.23 per share, before closing at $7.76 per share on volume of 9.5 million shares traded.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges Ikanos and certain of its officers, directors and underwriters with violations of the Securities Act of 1933. Ikanos engages in the development and provision of programmable semiconductors that enable fiber-fast broadband services over telephone companies' existing copper lines. The Company offers very-high-bit-rate digital subscriber lines that are designed to address different segments of the broadband semiconductor market for carrier networks and subscriber premises equipment.
The Complaint alleges that the Registration Statements and Prospectuses issued in connection with the IPO and Secondary Offering were negligently prepared and, as a result, contained untrue statements of material facts; omitted to state other facts necessary to make the statements made therein not misleading; and were not prepared in accordance with the rules and regulations governing their preparation. Specifically, the Complaint alleges, among other things, that the Registration Statements and Prospectuses included representations that the Company's business had grown due to successful deployments in Japan. In fact, according to the Complaint, the deployments in Japan had grown because Ikanos had shipped excessive product to Japanese customers in excess of those customers' needs and the Registration Statements and Prospectuses failed to disclose that the Company's future results would be adversely affected by this practice.
On October 4, 2006, Ikanos issued a press release announcing preliminary third quarter revenue results and stated that the revenue expectations were $4-6 million lower than expected, and the fourth quarter revenue results would be adversely affected due to, among other things, "carriers in Japan [] currently working through their existing equipment levels." On this news, the stock collapsed to as low as $7.23 per share, before closing at $7.76 per share on volume of 9.5 million shares traded.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
