| Company: | Redback Networks, Inc. |
| Ticker Symbol: | NASD: RBAKQ |
| Class Period: | April 12, 2000 to Oct. 10, 2003 |
| Court: | Northern District, CA |
| Date Filed: | Dec-31-03 |
| Lead Plaintiff Deadline: | Feb-21-04 |
| Allegations: |
A class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of purchasers of Redback Networks Inc. [Nasdaq: RBAKQ] common stock during the period between April 12, 2000 and Oct. 10, 2003, inclusive.
The complaint charges Joel M. Arnold, Thomas L. Cronan III, Kevin A. DeNuccio, Peter Lamond, Vinod Khosla, Vivek Ragavan, and Dennis P. Wolf with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges that, throughout the class period, the defendants failed to disclose the following adverse facts which ultimately lead to Redback's bankruptcy: (1) that the Company's financial results were materially inflated because Redback entered into a sales pact with Qwest Communications, Inc. ("Qwest"); (2) that this sales pact with Qwest called for Qwest to purchase large quantities of Redback merchandise in exchange for shares of Redback stock; (3) that under this sales pact Qwest had no obligation to purchase more merchandise from Redback in the future; and (4) as a result of this sales pact, Redback materially overstated and artificially inflated its earnings and net income.
On Oct. 10, 2003, Redback announced, after the close of the market, that the Securities and Exchange Commission (SEC) was investigating various transactions between the company and Qwest. News of this shocked the market, with shares of Redback falling 7.1 percent to close at $0.51 per share on Oct. 13, 2003. The death knell for the company was finally sounded when on Nov. 3, 2003, Redback filed for Chapter 11 bankruptcy protection. On news of this, shares of Redback fell 18.18 percent to close at $0.36 per share and are now worthless.
If you acquired the securities of the defendants during the Class Period you may, no later than Feb-21-04, 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 Joel M. Arnold, Thomas L. Cronan III, Kevin A. DeNuccio, Peter Lamond, Vinod Khosla, Vivek Ragavan, and Dennis P. Wolf with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges that, throughout the class period, the defendants failed to disclose the following adverse facts which ultimately lead to Redback's bankruptcy: (1) that the Company's financial results were materially inflated because Redback entered into a sales pact with Qwest Communications, Inc. ("Qwest"); (2) that this sales pact with Qwest called for Qwest to purchase large quantities of Redback merchandise in exchange for shares of Redback stock; (3) that under this sales pact Qwest had no obligation to purchase more merchandise from Redback in the future; and (4) as a result of this sales pact, Redback materially overstated and artificially inflated its earnings and net income.
On Oct. 10, 2003, Redback announced, after the close of the market, that the Securities and Exchange Commission (SEC) was investigating various transactions between the company and Qwest. News of this shocked the market, with shares of Redback falling 7.1 percent to close at $0.51 per share on Oct. 13, 2003. The death knell for the company was finally sounded when on Nov. 3, 2003, Redback filed for Chapter 11 bankruptcy protection. On news of this, shares of Redback fell 18.18 percent to close at $0.36 per share and are now worthless.
If you acquired the securities of the defendants during the Class Period you may, no later than Feb-21-04, 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.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
