LOS ANGELES, April 8, 2002 (PRIMEZONE) -- A class action lawsuit was filed in the United States District Court for the Northern District of California, San Jose Division, on behalf of purchasers of Juniper Networks, Inc. ("Juniper" or the "Company") (Nasdaq:JNPR), common stock between April 12, 2001 and June 7, 2001, inclusive (the "Class Period"). You may obtain a copy of the complaint from the Court or from Stull, Stull & Brody.
The complaint alleges that Juniper and certain of its officers and directors violated the Securities Exchange Act of 1934. The Company purports to be a provider of purpose-built Internet infrastructure solutions.
Specifically, the complaint charges that during the Class Period, defendants stated that the Company was on track to have second quarter 2001 revenues of $330+ million and that Deferred Revenue (i.e., revenue not yet recognized because customers had not yet accepted products) had declined because customer acceptance cycles were shorter than in the past. Defendants also represented the Company was on track to report 2001 earnings per share of $0.90 - $1.00, pro forma, causing its stock to trade as high as $69.50. Defendants took advantage of this inflation, selling 747,463 shares for proceeds of $42.9 million.
Then, on June 8, 2001, Juniper disclosed that its revenues and earnings would be much lower than previously represented. Defendants also admitted that customer acceptance cycles were in fact much longer than in the past, stretching from days to months. One analyst noted that the Company's announcement was matched in "severity by its tardiness." On this news, Juniper shares dropped to $38.02, or more than 46% lower than the Class Period high of $69.50.
Due to defendants' deceptive and illegal conduct, plaintiff and the other class members purchased their Juniper securities at inflated prices. Had plaintiff and the other class members been aware of the truthful condition of the Company and the adverse impact that defendants' statements and omissions were having on the Company, they would not have purchased their shares, or at least not at artificially inflated prices.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Stull, Stull & Brody who has significant experience and expertise in prosecuting class actions on behalf of investors and shareholders.
If you are a member of the class described above, you may, no later than April 15, 2002, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of the other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact: Marc L. Godino at Stull, Stull & Brody at 888-388-4605 or via e-mail at info@secfraud.com or on the law firm's web-site at www.secfraud.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.