SAN JOSE, Calif., April 29, 2002 (PRIMEZONE) -- A securities class action accuses JDS Uniphase Corporation (Nasdaq:JDSU) and 10 of its top officers of using false and misleading statements to artificially inflate stock price, Berman DeValerio Pease Tabacco Burt & Pucillo said today.
The lawsuit, filed on April 5, 2001, is pending in the U.S. District Court for the Northern District of California and seeks damages for violations of federal securities laws on behalf of all investors who bought JDS common stock from July 27, 1999 through July 26, 2001 (the Class Period).
Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, visit the firm's Website at www.bermanesq.com.
The lawsuit claims that the San Jose-based fiber-optics company issued false and misleading financial statements to the public. According to the complaint, JDS and 10 of its top officers stated throughout the Class Period that demand for the company's products was accelerating, and that the company's only problem was its ability to manufacture enough to meet demand. The complaint also maintains that the company misrepresented the success of several major acquisitions and downplayed its dependence on its two largest customers.
But the company falsely informed investors that demand was as strong as claimed, the complaint alleges. On July 26, 2001, JDS restated the company's third quarter 2001 financial results and took massive fourth-quarter charges to account for a total of $44 billion in write-offs associated with its acquisitions and excess inventory. Those revisions and write-offs increased JDS' losses for fiscal year 2001 to $56.1 billion. According to the complaint, JDS executives knew of a slowdown in demand because the company employed 80 engineers to monitor customers and inventory levels.
After the revised numbers were announced, JDS stock fell to as low as $7.90 per share after trading at a Class Period high of $146.32 - a 94% decline. The lawsuit also alleges that the artificially inflated stock price enabled certain company officers to sell $2.1 billion of their own JDS holdings before the company's true financial state became public.
If you purchased JDS common stock during the period July 27, 1999 through July 26, 2001, you may wish to contact the following attorney at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests:
Jennifer Abrams, Esq. Joseph J. Tabacco Jr., Esq. 425 California Street, Suite 2025 San Francisco, CA 94104 (415) 433-3200 law@bermanesq.com
You may also visit the firm's Website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than May 28, 2002. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 34 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca