| Company: | Sonus Networks, Inc. |
| Ticker Symbol: | NASD: SONS |
| Class Period: | December 11, 2000 to January 16, 2002 |
| Date Filed: | Jan-26-06 |
| Lead Plaintiff Deadline: | Mar-24-06 |
| Court: | District, MA |
| Allegations: |
A class action lawsuit has been commenced on behalf of an institutional investor in the United States District Court for the District of Massachusetts on behalf of purchasers of Sonus Networks, Inc. ("Sonus") (NASDAQ:SONS) common stock during the period between December 11, 2000 and January 16, 2002 (the "Class Period").
The complaint charges Sonus Networks and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sonus is a telecommunications company with a relatively small number of customers, all of which are large-scale communications service providers.
The complaint alleges that throughout the Class Period, Defendants knowingly or recklessly issued a series of materially false and misleading statements that misled the investing public about Sonus's business, operations, performance, and prospects, and, in particular, the quality and capabilities of its products. In fact, Sonus's products did not meet industry standards for reliability and were not capable of meeting Sonus's customers' requirements for transmitting voice calls over packet-based networks.
As alleged in the complaint, on January 16, 2002, the last day of the Class Period, Sonus shocked the market by announcing fourth quarter and year end 2001 results. Actual net loss for the fourth quarter of 2001 was $13.4 million, or $0.07 per share, compared with an actual net loss for the fourth quarter of 2000 of just $6.3 million, or $0.04 per share. Actual net loss for fiscal 2001 was $645.4 million, or $3.74 per share, compared with an actual net loss for fiscal 2000 of only $50.0 million, or $0.52 per share. Defendants finally stopped claiming that Sonus provided "carrier-class" products, and that its products "enable(d) service providers to deploy an integrated network capable of carrying both voice and data traffic."
On this news, the following day Sonus's stock price dropped below $5, from a Class Period high of $45.88 on January 31, 2001. Volume was 20,640,000 shares, compared to an average daily trading volume during the Class Period of 6,259,735.
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.
At LawyersandSettlements.com, it is our goal to keep you informed about important legal cases and settlements. We are dedicated to helping you resolve your legal complaints.
The complaint charges Sonus Networks and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sonus is a telecommunications company with a relatively small number of customers, all of which are large-scale communications service providers.
The complaint alleges that throughout the Class Period, Defendants knowingly or recklessly issued a series of materially false and misleading statements that misled the investing public about Sonus's business, operations, performance, and prospects, and, in particular, the quality and capabilities of its products. In fact, Sonus's products did not meet industry standards for reliability and were not capable of meeting Sonus's customers' requirements for transmitting voice calls over packet-based networks.
As alleged in the complaint, on January 16, 2002, the last day of the Class Period, Sonus shocked the market by announcing fourth quarter and year end 2001 results. Actual net loss for the fourth quarter of 2001 was $13.4 million, or $0.07 per share, compared with an actual net loss for the fourth quarter of 2000 of just $6.3 million, or $0.04 per share. Actual net loss for fiscal 2001 was $645.4 million, or $3.74 per share, compared with an actual net loss for fiscal 2000 of only $50.0 million, or $0.52 per share. Defendants finally stopped claiming that Sonus provided "carrier-class" products, and that its products "enable(d) service providers to deploy an integrated network capable of carrying both voice and data traffic."
On this news, the following day Sonus's stock price dropped below $5, from a Class Period high of $45.88 on January 31, 2001. Volume was 20,640,000 shares, compared to an average daily trading volume during the Class Period of 6,259,735.
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.
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