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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
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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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