NEW YORK, Feb. 20, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of New Hampshire on behalf of all purchasers of Enterasys Networks, Inc. ("Enterasys" or the "Company") (NYSE:ETS) securities between September 26, 2001 and February 1, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Enterasys' financial results and business prospects. Specifically, the complaint alleges that these press releases were materially false and misleading because, among other things, (i) the Company's Asia Pacific region operations, which represented a material portion of the Company's revenues, was improperly recognizing revenues in violation of the Company's accounting policies and Generally Accepted Accounting Principles. As a result, Enterasys' operating results were materially misrepresented and overstated; (ii) Enterasys lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) based on the foregoing, defendants' statements concerning the prospects of Enterasys were lacking in a reasonable basis at all times. On February 1, 2002, however, Enterasys shocked the market when it announced that it would be delaying the release of its fourth quarter and fiscal year financial results because it was reviewing the revenue recognition practices of its Asia Pacific operations. The Company also announced that it was being investigated by the SEC.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Enterasys securities between September 26, 2001 and February 1, 2002, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased Enterasys securities during the Class Period, you may, not later than April 8, 2002, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Avozz@faruqilaw.com TICKER: NYSE:ETS
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.