PHILADELPHIA, April 13, 2011 (GLOBE NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. filed a class action lawsuit in the United States District Court, Northern District of California, 11cv01782, on behalf of all persons who purchased or otherwise acquired the common stock of Cisco Systems, Inc. (Nasdaq:CSCO), between February 3, 2010 and February 9, 2011, against the Company, John T. Chambers, Frank Calderoni, Robert Lloyd, and Phil Smith for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934. If you wish to serve as lead plaintiff, you must move the Court no later than May 30, 2011. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or any questions concerning this notice, please contact plaintiffs' counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. A copy of the complaint can be viewed at www.bernardmgross.com.
Cisco designs, manufactures, and sells internet protocol ("IP") based networking and other products related to the communications and information technology ("IT") industry and provides services related to their use worldwide. The Complaint alleges that, throughout the class period, defendants failed to disclose material adverse facts about the Company's true financial condition, business and prospects, specifically, intense pricing pressure from competitors forcing Cisco to dramatically lower its prices while allowing the individual defendants and certain Company insiders to collectively sell over 7.0 million shares of their personally-held Cisco common stock for proceeds in excess of $175 million, and thus caused Plaintiffs and members of the Class to purchase Cisco common stock at artificially inflated prices.
On February 9, 2011, defendants caused Cisco to announce its financial results for the 2011 fiscal second quarter, the period ended January 29, 2011, in a press release and analyst call, wherein defendants noted that non-GAAP gross margins were 62.4%, down 1.9 percentage points quarter-over-quarter and down 3.2 percentage points year-over-year and product related non-GAAP gross margins for the second quarter were 61.1%, down 2.9 percentage points from the prior quarter. Due to the unexpected drop in Cisco's margins, the Company's shares fell $3.12 per share, or more than 14%, on extremely heavy trading volume.
Plaintiffs are represented by Law Offices Bernard M. Gross, P.C. The firm has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Any questions, Please Contact:
Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esquire
Deborah R. Gross, Esquire
Telephone: 866-561-3600 (toll free)
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com