HARTFORD, Conn., April 30, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Occam Networks, Inc. ("Occam" or the "Company") (Nasdaq:OCNW) between May 2, 2006 and April 17, 2007, inclusive, (the "Class Period"). Also included are those who purchased shares in the Secondary Offering on November 2, 2006.
The Complaint alleges that Occam and certain of its officers and directors violated Federal Securities laws. Specifically, Occam's reported financial results were the result of improper revenue recognition that was in violation of Generally Accepted Accounting Principles ("GAAP"). The Complaint further alleges that certain of Occam's materially false financial results were included in the Company's Registration Statement and Prospectus that were filed with the SEC in connection with the Company's November 2006 Secondary Offering.
On April 2, 2007, Occam announced that it would not be able to timely file its Annual Report on Form 10-K for the year ended December 31, 2006. Occam indicated its report would need to be delayed because its Audit Committee was reviewing the Company's commitments to provide customers with software, hardware, and software maintenance, hardware and software upgrades, training and other services in connection with purchases of Occam's network equipment. The following day, shares of Occam fell from $11.10 per share to $8.51 per share, a one-day decline of 23%. On April 17, 2007, after the market closed, Occam stated that it would not be able to file its financial report in the 15-day extended deadline.
If you are a member of the class, you may, no later than June 25, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard, P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.