NEW YORK, Jan. 23, 2004 (PRIMEZONE) -- Wechsler Harwood LLP today announced that a securities class action has been commenced on behalf of persons or entities who purchased or otherwise acquired the securities of Redback Networks Inc. ("Redback" or the "Company") (Nasdaq:RBAK) between April 12, 2000 and October 10, 2003, inclusive, (the "Class Period").
The case, entitled Gillis v. Arnold, et al., Case No. 04-CV-00282(JW)(RS) is pending in the United States District Court for the Northern District of California against certain senior officers and directors of Redback; namely, Joel M. Arnold, Thomas L. Cronan III, Kevin A. DeNuccio, Pierre R. Lamond, Vinod Khosla, Vivek Ragavan, and Dennis P. Wolf. A copy of the complaint is available from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The Complaint alleges that during the Class Period, the defendants failed to disclose and indicate the following adverse facts which ultimately lead to Redback's bankruptcy: (1) that the Company's financial results were materially inflated because Redback entered into a sales pact with Qwest; (2) that this sales pact with Qwest called for Qwest to purchase large quantities of Redback merchandise in exchange for shares of Redback stock; (3) that under this sales pact Qwest had no obligation to purchase more merchandise from Redback in the future; and (4) as a result of this sales pact, Redback materially overstated and artificially inflated its earnings and net income.
On November 3, 2003, Redback filed for Chapter 11 bankruptcy protection. On news of this, shares of Redback fell 18.18% to close at $0.36 per share and are now worthless.
If you purchased Redback securities during the Class Period, you may request that the Court appoint you as lead plaintiff by February 20, 2004. 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 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.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
Virgilio Soler, Wechsler Harwood Shareholder Relations Department: vsoler@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca