NEW YORK, July 26, 2002 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the District of Massachusetts on behalf of all purchasers of the Sonus Networks, Inc. common stock (Nasdaq:SONS) during the period from December 11, 2000 through January 16, 2002 (the "Class Period"). The action seeks to recover losses suffered by such investors.
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the case at www.kmslaw.com/new_cases/sonus/sonus.htm, or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The complaint asserts claims for violation of Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 against Sonus Networks and nine of its senior executives who, during the class period, received in excess of $120 million from their insider selling of Sonus shares at artificially inflated prices.
The alleged violations, according to the complaint, stem from materially false and misleading statements issued by the defendants during the Class Period that: (i) misrepresented to the public the quality of certain of Sonus' networking products, and the (troubled) status and financial details of Sonus' relationship with one of its largest customers; and (ii) caused the Sonus stock to trade at artificially-inflated prices. On September 26, 2001, Sonus shares lost 50% of their value in one day after the company revealed revenue shortfalls and hundreds of millions of dollars in charges against earnings. Sonus shares would further decline as further details emerged concerning: (i) customer dissatisfaction with Sonus products; and (ii) Sonus' engagement in "dark fiber swap" transactions with Qwest (whose engagement in such swaps is the subject of an SEC investigation). Prior to these disclosures, as detailed in the complaint, Sonus executives received in excess of $120 million from insider selling at artificially-inflated prices. The suit seeks to recover losses suffered by investors who purchased Sonus stock during the class period, excluding the defendants and their affiliates.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than September 16, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Ori Braun KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: obraun@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca