BALA CYNWYD, Pa., Aug. 29, 2002 (PRIMEZONE) -- A pending class action charges Sonus Networks, Inc. ("Sonus" or the "Company") (Nasdaq:SONS) with misleading investors about its business and financial condition according to the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the District of Massachusetts. Plaintiff seeks damages for violations of the federal securities laws on behalf of all investors who purchased Sonus Networks, Inc. securities between December 11, 2000 and January 16, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Sonus Networks, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Massachusetts-based Sonus Networks, Inc. issued numerous statements which highlighted the Company's financial performance and described the Company's success in acquiring and/or developing new products which it was then able to offer to current and prospective customers. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that certain products that Sonus claimed it had sold to Qwest Communications International, Inc. ("Qwest") would not be ready for deployment in time to meet Qwest's needs and would result in Qwest having to purchase competing products from Nortel; (2) that the Company's highly-touted transaction with Qwest, which contributed more than 10% of Sonus' first quarter 2001 revenues, was actually a quid pro quo deal wherein Sonus had to agree to buy a $20 million Irrevocable Right of Use ("IRUs") from Qwest in exchange for a $20 million order from Qwest; (3) that contrary to defendants' representations, Sonus' products were not carrier class as they did not have 99.999% availability, did not have voice quality as good as circuit-switched networks and did not have sophisticated network management and configuration capabilities; and (4) as a result, Sonus was not on track to report revenues of $195 million in 2001.
On January 16, 2002, the last day of the Class Period, Sonus announced its disappointing fourth quarter and year-end 2001 results and revealed that revenues for the year were just $173 million compared to Class Period estimates exceeding $200 million. Following this announcement, shares of Sonus stock fell below $5 per share.
If you purchased Sonus Networks, Inc. securities between December 11, 2000 and January 16, 2002, you may be a member of the class and have until September 17, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.