WASHINGTON, Aug. 21, 2002 (PRIMEZONE) -- The Law Office Of Mark McNair today announced that a securities class action has been commenced on behalf of shareholders who acquired of Riverstone Networks, Inc. (Nasdaq:RSTN) securities during the period between August 10, 2001 and June 5, 2002, inclusive (the "Class Period").
A class action lawsuit was filed in the United States District Court for the Northern District of California. The complaint alleges that Riverstone Networks, Inc. -- a provider of metropolitan area networking solutions -- and certain of its officers and directors issued false and misleading statements concerning its business and financial condition.
Among other things, the complaint alleges that each defendant was aware that Riverstone would be unable to meet its projected Q2 02 to Q1 03 revenue and earnings per share ("EPS") targets unless they manipulated the Company's revenue, earnings and receivables. However, because the "appearance" of growth was so critical to defendants' plan to inflate the price of Riverstone shares and sell their own shares and raise monies via its $150 million debt offer, defendants continued to maintain throughout the Class Period that Riverstone would meet revenue projections and EPS when, in reality, defendants knew that Riverstone could not achieve their projections without attempting to fraudulently record revenue by inducing clients who defendants knew did not have the ability to pay to agree to take delivery of goods and that Riverstone was, in fact, suffering from greater losses.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you are a member of the Class, you may move the court no later than September 24, 2002 to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice.
If you were a purchaser of shares of the stock listed above during the period indicated and want to discuss your legal rights, you may e-mail or call the Law Office Of Mark McNair who will, without obligation or cost to you, attempt to answer your questions. You may contact the Law Office Of Mark McNair at 1101 30th St. N.W. Suite 500, Washington, DC 20007, by calling toll-free 877.511.4717 or 202.872.4717 or by email at mcnair@justice4investors.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca