| Company: | Redback Networks Inc. |
| Ticker Symbol: | NASD: RBAKD |
| Class Period: | April 12, 2000 to October 10, 2003 |
| Court: | Northern District, CA |
| Date Filed: | Jan-08-04 |
| Lead Plaintiff Deadline: | Feb-13-04 |
| Allegations: |
A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Redback Networks Inc. ("Redback") (NASDAQ:RBAKD) publicly traded securities during the period between April 12, 2000 and October 10, 2003 (the "Class Period"), including former shareholders of Abatis Systems Corporation ("Abatis Systems") who acquired Redback shares in Redback's October 3, 2000 acquisition of Abatis Systems.
The complaint charges certain of Redback's officers and directors with violations of the Securities Exchange Act of 1934. Redback is a provider of telecommunications networking equipment that enables carriers and service providers to deploy high-speed access and services to the Internet and corporate networks. In November 2003, the Company filed a voluntary pre-packaged plan of reorganization under Chapter 11 of the United States Bankruptcy Code.
The complaint alleges that defendants issued a series of materially false and misleading statements to the marketplace concerning the Company's financial condition and its relationship with Qwest Communications International ("Qwest"). Throughout the Class Period, Redback touted its relationship with Qwest and the importance of Qwest's business with Redback. However, the complaint alleges that defendants knew, but failed to disclose, that Qwest had only agreed to make the large purchases of Redback products it did not want or need in exchange for receiving free shares of Redback stock; that Redback was giving shares of its stock to Qwest insiders in exchange for sales contracts from Qwest; and that Qwest had no obligation to make further purchases from Redback.
During the Class Period, while the Company's stock traded at artificially inflated prices, trading as high as $179 per share on June 30, 2000, defendants sold over $142 million worth of their own stock into the open market. Defendants also caused the Company to use its inflated stock as acquisition currency to purchase Abatis Systems for over $636 million in October 2000 and to undertake a registered secondary offering of more than 2.4 million shares of Redback stock on April 19, 2001.
On October 10, 2003, the Company filed a form S-4 with the SEC that stated that the SEC was examining various transactions involving Qwest, including some between Redback and Qwest. On November 3, 2003, the Company filed for Chapter 11 bankruptcy protection.
If you acquired the securities of the defendants during the Class Period you may, no later than Feb-16-04, 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 certain of Redback's officers and directors with violations of the Securities Exchange Act of 1934. Redback is a provider of telecommunications networking equipment that enables carriers and service providers to deploy high-speed access and services to the Internet and corporate networks. In November 2003, the Company filed a voluntary pre-packaged plan of reorganization under Chapter 11 of the United States Bankruptcy Code.
The complaint alleges that defendants issued a series of materially false and misleading statements to the marketplace concerning the Company's financial condition and its relationship with Qwest Communications International ("Qwest"). Throughout the Class Period, Redback touted its relationship with Qwest and the importance of Qwest's business with Redback. However, the complaint alleges that defendants knew, but failed to disclose, that Qwest had only agreed to make the large purchases of Redback products it did not want or need in exchange for receiving free shares of Redback stock; that Redback was giving shares of its stock to Qwest insiders in exchange for sales contracts from Qwest; and that Qwest had no obligation to make further purchases from Redback.
During the Class Period, while the Company's stock traded at artificially inflated prices, trading as high as $179 per share on June 30, 2000, defendants sold over $142 million worth of their own stock into the open market. Defendants also caused the Company to use its inflated stock as acquisition currency to purchase Abatis Systems for over $636 million in October 2000 and to undertake a registered secondary offering of more than 2.4 million shares of Redback stock on April 19, 2001.
On October 10, 2003, the Company filed a form S-4 with the SEC that stated that the SEC was examining various transactions involving Qwest, including some between Redback and Qwest. On November 3, 2003, the Company filed for Chapter 11 bankruptcy protection.
If you acquired the securities of the defendants during the Class Period you may, no later than Feb-16-04, 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.
