PHILADELPHIA, Oct. 30, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit on behalf of an investor against Clarent Corporation ("CLRN" or the "Company") (Nasdaq:CLRN) and certain officers and directors in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased Clarent Corporation securities during the period from April 19, 2001 through and including September 4, 2001, inclusive (the "Class Period").
The complaint alleges that defendant Clarent and certain of its officers and directors violated Section 10(b) and 20 (a) of the Securities Exchange Act of l934, and Rule 10b-5 promulgated thereunder. The complaint alleges that defendants made materially false and misleading representations regarding the Company's revenues and earnings for the first and second quarters of fiscal year 2001 which artificially inflated the price of Clarent stock.
On September 4, 2001, prior to the opening of trading, Clarent issued a press release announcing that it has commenced an "Investigation of Potential Overstatement of Historical Revenues; [and that it] Places Three Executives on Administrative Leave." According to the press release, Clarent stated that "it has discovered information suggesting that the Company's previously reported revenues for the first and second quarters of fiscal 2001 may have been materially overstated. The Company's Board of Directors has formed a special committee to investigate a number of transactions that place in question the Company's historical financial results." The press release continued that the "Company anticipates that its first quarter 2001 revenues, as released on April 19, 2001, and its second quarter 2001 revenues, as released on July 19, 2001, will be reduced and the related net losses will increase upon conclusion of this review. The related period balance sheets will also be adjusted; in particular, the Company believes that there will be a material reduction in cash and increase in other assets as of June 30, 2001." Finally, the Company disclosed that Jerry Chang, Matthew Chang and Kevin Chang were being placed on administrative leave.
Trading in Clarent's stock, which traded as high as $14.24 per share during the class period, was halted by Nasdaq pending release of further news by the Company and remains halted.
If you purchased Clarent Corporation securities during the period from April 12, 2001 through September 4, 2001, inclusive, you may, no later than November 5, 2001 move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party 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 members(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 Clarent Corp., securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...[Y]ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased Clarent Corporation securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Todd S. Collins, Esquire Jacob A. Goldberg, Esq. Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Phone: 888-891-2289 or 215-875-3000 Fax: 215-875-5715 Website: http://www.bergermontague.com e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.