NEW YORK, May 20, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of Brocade Communications Systems, Inc. ("Brocade" or the "Company") (Nasdaq:BRCD) between February 21, 2001 and May 15, 2005, inclusive (the "Class Period").
The complaint alleges that throughout the Class Period, defendants issued materially false and misleading financial statements to the investing public. On May 16, 2005, the Company issued a press release announcing the restatement of its fiscal 2001 to fiscal 2004 earnings. The release announced that "the Company will restate its financial statements for the fiscal years ending 2002 through 2004 to record additional charges for stock-based compensation expense." The release additionally noted that the Company estimated the impact of the restatement would be to reduce fiscal 2001 and fiscal 2002 earnings per share by up to $0.11 and $0.19, respectively. The Company also estimated that fiscal 2003 and fiscal 2004 earnings per share would be reduced as well. Upon this announcement, Brocade's stock dropped to $4.13 per share, compared to the $40+ per share prices it traded at during the Class Period.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Brocade securities on any world exchange between February 21, 2001 and May 15, 2005, and sustained damages, you may, no later than July 18, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Christopher Hinton of Murray, Frank & Sailer LLP.