BATON ROUGE, La., April 15, 2002 (PRIMEZONE) -- An investor has filed suit against JDS Uniphase Corporation (Nasdaq:JDSU) claiming the company used false and misleading statements to artificially inflate its stock price, LeBlanc & Waddell LLC said today.
The class action, which was 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).
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 LeBlanc & Waddell LLC to discuss your rights and interests:
Roger LeBlanc, Esq. Chad A. Dudley, Esq. LeBlanc & Waddell, LLC 5353 Essen Lane, Suite 420 Baton Rouge LA 70809 rogerleblanc@lw-law.net (800) 988-3514
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 LeBlanc & Waddell LLC 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.
With offices in Baton Rouge, New Orleans, Shreveport, Monroe and Slidell, Louisiana, LeBlanc & Waddell, LLC represents investors in securities class action lawsuits and has experience in prosecuting class actions. The firm prides itself on its responsiveness to shareholders and their needs in each case.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca