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(ASCEND) Ascend Lawsuit



Since some of you asked about it and I didn't see anything on the list,
here's what came off of Yahoo.

Enjoy,
Joe Shaw - jshaw@insync.net
NetAdmin - Insync Internet Services
Learn more, and you will never starve.

                             Reuters New Media
                                      
   
                    [ Yahoo | Write Us | Search | Info ]
                                      
   Wednesday December 3 3:02 PM EST 
   
Ascend Communications Named in Class Action

   NEW YORK (Reuters) - Lawyers representing plaintiffs against Ascend
   Communications Inc said Wednesday they are filing for class action
   status, alleging deceptive price inflation of the computer networking
   company's stock.
   
   The filing for class action status in the U.S. District Court, Central
   District of California, covers investors who bought Ascend's stock
   between November 5, 1996 and September 30, 1997.
   
   The complaint, filed by the law firms Weiss & Yourman and Stull Stull
   & Brody, alleges that officers and some directors of Ascend, "engaged
   in an illegal scheme and deceptive course of conduct designed to
   inflation Ascend's stock price through positive statements concerning
   Ascend's business, earnings and its growth prospects."
   
   The complaint said the alleged positive statements were made at the
   same time the "defendants knew, or recklessly disregarded, but failed
   to disclose to investors, that sales of Ascend's advanced modem
   products would all but cease because of, among other things, serious
   software and firmware problems."
   
   The complaint also charges that the defendants' alleged "course of
   conduct allowed Ascend to consummate a merger transaction during the
   class period with Cascade Communications by exchanging overvalued
   Ascend stock for the stock of Cascade. " That transaction was
   completed on June 30.
   
   Ascend Communications, based in Alameda, Calif., was not presently
   available for comment.

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