| Company: | Occam Networks, Inc. |
| Ticker Symbol: | NASD: OCNW |
| Class Period: | May 2, 2006 to April 17, 2007 |
| Date Filed: | Apr-26-07 |
| Lead Plaintiff Deadline: | Jun-25-07 |
| Court: | Central District, CA |
| Allegations: |
A class action suit has been filed in the United States District Court for the Central District of California against Occam Networks, Inc. ("Occam" or the "Company") (NASDAQ: OCNW) and certain of its officers and directors, on behalf of all persons or entities who purchased the common stock of Occam between May 2, 2006 and April 17, 2007, inclusive (the "Class Period").
The Complaint alleges that during the Class Period, defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by publicly issuing a series of false and misleading statements regarding the Company's business and financial results, thus causing Occam's common stock to trade at artificially inflated prices. In particular, the Complaint alleges that, unknown to investors, during the Class Period, defendants knew or recklessly disregarded that Occam's reported financial results were the product of improper revenue recognition, in violation of generally accepted accounting principles ("GAAP"), concerning the Company's commitments to provide customers with software, hardware and software maintenance, hardware and software upgrades, training, and other services in connection with customers' purchases of the Company's network equipment and that during the Class Period, the Company's internal controls were materially defective.
The Complaint further alleges that certain of Occam's materially false and misleading financial reports were included in the Company's Registration Statement and Prospectus that were filed with the SEC in connection with the Company's November 7, 2006, public offering of 5,250,000 shares of its common stock at a price of $14.00 per share.
The Complaint further alleges that on April 2, 2007, after the close of trading, Occam surprised investors by disclosing that it would not file its Annual Report on Form 10-K for the year ended December 31, 2006 on time. Occam explained that it was unable to file its Form 10-K because "its Audit Committee is reviewing the Company's commitments to provide customers with software, hardware and software maintenance, hardware and software upgrades, training, and other services in connection with customers' purchases of the Company's network equipment. The Audit Committee is also considering whether these commitments impact revenue recognition and the adequacy of the Company's internal controls relating to the documentation of customer commitments as part of the terms and conditions of sale."
On April 3, 2007, the next trading day, Occam shares declined from $11.10 per share, at the close of trading on April 2, 2007, to close at $8.51 per share at the close of trading on April 3, 2007, a decline of $2.59 per share or approximately 23%, on heavier than usual volume. Then on April 17, 2007, after the close of trading, Occam disclosed that that it would "not file its Annual Report on Form 10-K for the fiscal year ended December 31, 2006 by today's 15-day extended filing deadline." On April 18, 2007, Occam shares declined from $8.91 per share at the close of trading on April 18, 2007, to close at $8.54 per share, a decline $0.37 per share or approximately 4%, on heavier than usual volume.
On April 23, 2007, the Company disclosed that it received a notice from NASDAQ stating that because the Company had not filed its annual report on time, Occam was not in compliance with NASDAQ marketplace rules.
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 alleges that during the Class Period, defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by publicly issuing a series of false and misleading statements regarding the Company's business and financial results, thus causing Occam's common stock to trade at artificially inflated prices. In particular, the Complaint alleges that, unknown to investors, during the Class Period, defendants knew or recklessly disregarded that Occam's reported financial results were the product of improper revenue recognition, in violation of generally accepted accounting principles ("GAAP"), concerning the Company's commitments to provide customers with software, hardware and software maintenance, hardware and software upgrades, training, and other services in connection with customers' purchases of the Company's network equipment and that during the Class Period, the Company's internal controls were materially defective.
The Complaint further alleges that certain of Occam's materially false and misleading financial reports were included in the Company's Registration Statement and Prospectus that were filed with the SEC in connection with the Company's November 7, 2006, public offering of 5,250,000 shares of its common stock at a price of $14.00 per share.
The Complaint further alleges that on April 2, 2007, after the close of trading, Occam surprised investors by disclosing that it would not file its Annual Report on Form 10-K for the year ended December 31, 2006 on time. Occam explained that it was unable to file its Form 10-K because "its Audit Committee is reviewing the Company's commitments to provide customers with software, hardware and software maintenance, hardware and software upgrades, training, and other services in connection with customers' purchases of the Company's network equipment. The Audit Committee is also considering whether these commitments impact revenue recognition and the adequacy of the Company's internal controls relating to the documentation of customer commitments as part of the terms and conditions of sale."
On April 3, 2007, the next trading day, Occam shares declined from $11.10 per share, at the close of trading on April 2, 2007, to close at $8.51 per share at the close of trading on April 3, 2007, a decline of $2.59 per share or approximately 23%, on heavier than usual volume. Then on April 17, 2007, after the close of trading, Occam disclosed that that it would "not file its Annual Report on Form 10-K for the fiscal year ended December 31, 2006 by today's 15-day extended filing deadline." On April 18, 2007, Occam shares declined from $8.91 per share at the close of trading on April 18, 2007, to close at $8.54 per share, a decline $0.37 per share or approximately 4%, on heavier than usual volume.
On April 23, 2007, the Company disclosed that it received a notice from NASDAQ stating that because the Company had not filed its annual report on time, Occam was not in compliance with NASDAQ marketplace rules.
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.
