BALA CYNWYD, Pa., Dec. 4, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits on behalf of shareholders of Sonus Networks, Inc., Turnstone Systems, Inc., Interwoven, Inc. and StarMedia Networks, Inc. for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the respective class periods, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our Website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002 or by e-mail at info@sbclasslaw.com.
SONUS NETWORKS, INC. (Nasdaq:SONS) (Class Period: 05/24/00 - 12/06/00) The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about May 24, 2000, Sonus Networks commenced an initial public offering of 5,000,000 of its shares of common stock at an offering price of $23 per share (the "Sonus Networks IPO"). In connection therewith, Sonus Networks filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriters allocated to those investors material portions of the restricted number of Sonus Networks shares issued in connection with the Sonus Networks IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate Sonus Networks shares to those customers in the Sonus Networks IPO in exchange for which the customers agreed to purchase additional Sonus Networks shares in the aftermarket at pre-determined prices. The complaint was filed in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, N.Y. The lead plaintiff motion must be filed no later than January 8, 2002.
TURNSTONE SYSTEMS, INC. (Nasdaq:TSTN) (Class Period: 01/31/00 - 12/06/00) The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about January 31, 2000, Turnstone commenced an initial public offering of 3,000,000 of its shares of common stock at an offering price of $29 per share (the "Turnstone IPO"). In connection therewith, Turnstone filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriters allocated to those investors material portions of the restricted number of Turnstone shares issued in connection with the Turnstone IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate Turnstone shares to those customers in the Turnstone IPO in exchange for which the customers agreed to purchase additional Turnstone shares in the aftermarket at pre-determined prices. The complaint was filed in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, N.Y. The lead plaintiff motion must be filed no later than January 11, 2002.
INTERWOVEN, INC. (Nasdaq:IWOV) (Class Period: 10/07/99 - 12/06/00) The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about October 7, 1999, Interwoven commenced an initial public offering of 3,150,000 of its shares of common stock at an offering price of $17 per share (the "Interwoven IPO"). In connection therewith, Interwoven filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriters allocated to those investors material portions of the restricted number of Interwoven shares issued in connection with the Interwoven IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate Interwoven shares to those customers in the Interwoven IPO in exchange for which the customers agreed to purchase additional Interwoven shares in the aftermarket at pre-determined prices. The complaint was filed in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, N.Y. The lead plaintiff motion must be filed no later than January 8, 2002.
STARMEDIA NETWORKS, INC. (Nasdaq:STRME) (Class Period: 04/11/00 - 11/19/01) The complaint charges StarMedia Networks, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that StarMedia reported artificially inflated financial results in press releases and filings made with the SEC by improperly recognizing revenue in violation of Generally Accepted Accounting Principles ("GAAP"). Specifically, the complaint alleges that two of the Company's primary subsidiaries, AdNet S.A. de C.V. and StarMedia Mexico, S.A. de C.V, had engaged in improper accounting practices which had the effect of materially overstating StarMedia's reported revenues and earnings by at least $10 million. On November 19, 2001, as alleged in the complaint, StarMedia issued a press release announcing that based on the "preliminary" results of an internal investigation into its accounting practices, it expects to restate its financial statements for fiscal year 2000 and the first two quarters of 2001 and that those financial statements should not be relied upon. The Company further reported that its Chief Financial Officer had "resigned." Immediately following the announcement of the restatement, the Nasdaq Stock Market halted trading in StarMedia stock, pending the receipt of additional information from the Company. StarMedia stock last traded at $0.38 per share, which is 98.5% less than the Class Period high of $25.50, reached on April 11, 2000. The complaint was filed in the United States District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than January 19, 2002.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at 888-299-7706.
More information on these and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.