NEW YORK, July 16, 2002 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Northern District of Illinois, civil action number 02 c 5010, on behalf of all persons or entities who purchased Tellabs, Inc. ("Tellabs" or the "Company") (Nasdaq:TLAB) between December 11, 2000 and June 19, 2001, both dates inclusive (the "Class Period"). Tellabs, Michael J. Birck, and Richard C. Notebaert are named as defendants in this action.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J.Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by publicly issuing a series of material misrepresentations during the Class Period, thereby artificially inflating the price of Tellabs securities. According to the Complaint, Tellabs had represented to the public, in press releases and other public statements issued throughout the Class Period, that its new products were enjoying strong demand, that the seeming slowdown in its business was due to "component-parts shortages which have been corrected," that Tellabs' business was strong fundamentally, and that the Company would meet earnings and revenues expectations. The Complaint alleges that these, and other, statements were materially false and misleading because, as alleged in the Complaint, its new optical networking line of products were inferior to the competition and their products were not well-received or in high demand. The Complaint further alleges that, contrary to Tellabs' statements to the investing public, the Company's highly-touted acquisition of SALIX was a failure as sales of the product line Tellabs gained in the acquisition were falling. On June 19, 2002, Tellabs issued a press release revealing that second quarter of 2001 revenues would be 35% less than guidance reiterated only weeks before, and that the company's earnings would be breakeven instead of the consensus $0.29 per share. In reaction to the announcement, the price of Tellabs' common stock fell by 31%, from $23 per share on June 19, 2002, to $15.87 on June 20, 2002, representing a 75% decline from the Class Period high. During the Class Period, defendant Birck sold a total of 80,000 shares of Tellabs common stock at prices between $64.25 to $65.38 per share, grossing proceeds of more than $5.18 million.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased Tellabs during the Class Period described above, you may, no later than September 2, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca