PHILADELPHIA, April 9, 2001, (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California against defendant Adaptive Broadband Corporation. ("Adaptive" or the "Company") on behalf of purchasers of the stock who purchased Adaptive (Nasdaq:ADAP) securities during the period from August 11, 2000 through March 15, 2001 (the "Class Period").
The complaint charges Adaptive and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Adaptive supplies terrestrial wireless and satellite-based systems to support ultra-high-speed Internet access, broadcast digital TV transport and worldwide Internet backbones. The Company also provides solutions for satellite-based data communication and terrestrial wireless telemetry networks.
On March 15, 2001, Adaptive announced that it will restate its Q4 2000 financial statements because of accounting misstatements in a press release, which stated in part: "Adaptive Broadband Corporation announced today that it expects to restate its revenue and cost of revenue for the quarter ended June 30, 2000. The company currently expects that its revenue and cost of revenue for the quarter will be reduced by $4.0 million relating to a sales transaction recorded during the quarter that the company now believes should not have been recognized. After this restatement, revenue for the quarter would be $13.1 million. The company does not expect the restatement to affect its gross margin or net loss from continuing operations. As previously announced, as of December 31, 2000, the company significantly increased its allowance for doubtful accounts to reflect the condition of certain customers involved in several sales transactions, including the one that requires the restatement. The company also said that its new management team is working with the company's Board of Directors, auditors and outside counsel to determine whether any other similar transactions exist in the same or other accounting periods, and if so, what actions, if any, may need to be taken with respect to them. The company hopes to be in a position to make this determination by March 30, 2001. Based on this review, the company will take whatever steps may be necessary so that its financial reporting practices for all past and future periods conform in all respects to applicable accounting standards." On this news, Adaptive's stock price dropped to as low as $1.47 per share, or more than 95% from its Class Period high of $33.125.
If you purchased Adaptive Broadband Corporation securities during the Class Period, you may, no later than May 15, 2001, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Adaptive Broadband Corporation securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@spectorandroseman.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@spectorandroseman.com For more detailed information about the firm please visit its Website at http://www.spectorandroseman.com
SPECTOR, ROSEMAN & KODROFF, P.C., located in Philadelphia and San Diego, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts that have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud . As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.
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CONTACT: Spector, Roseman & Kodroff, P.C.
Robert Roseman
(888) 844-5862