East Bay, CA: (Mar-13-08) A securities class action lawsuit was brought against Ikanos Communications Inc. and some of its directors, alleging that the company issued a series of material misrepresentations which had the effect of artificially inflating the market price. The suit, filed in November 2006 against the Fremont-based Ikanos, was recently dismissed. Company spokespersons stated that the order of dismissal proved that the allegations against the company and its directors were baseless.
Court officials alleged that the company's disclosures were more than adequate, and the accusations against it lacked merit. The judge noted that the disclosures were of sufficient precision and clarity to alert prudent investors to the nature of the offerings and the risks entailed. Ikanos officials said that the company was very pleased about the recent dismissal in the US District Court for the Southern District of New York, and stated that with the distraction of litigation out of the way, the company could focus all of its efforts on managing its business. [
