NEW YORK, Nov. 15, 2006 (PRIMEZONE) -- Wechsler Harwood LLP ("Wechsler Harwood") today announced that it has filed a class action suit on behalf of investors of Ikanos Communications, Inc. (Nasdaq:IKAN) ("Ikanos" or the "Company") who purchased the common stock of Ikanos pursuant or traceable to the Company's initial public offering on September 22, 2005 or its secondary offering on March 8, 2006 seeking remedies under the Securities Act of 1933. The action, entitled Sherukuri v. Ikanos Communications, Inc., C.A. No. 06-cv-13174 (PAC), is pending in the United States District Court for the Southern District of New York, and names as defendants the Company as well as certain senior officers and directors.
The complaint alleges that Ikanos and certain of its officers and directors violated federal securities laws by making false and misleading statements and omissions concerning Ikanos' financial health and business prospects in the Company's Registration Statements and Prospectuses for the initial and secondary offerings, respectively. Specifically, Ikanos failed to disclose that its financial results would be adversely affected by shipment of chipset products to its customers in Japan in excess of demand. On October 4, 2006, the Company issued a press release announcing, among other things, that its revenues results for the third quarter would be lower than expected, leading to fall in the value of the stock.
If you purchased or otherwise acquired Ikanos securities between September 22, 2005 and October 4, 2006, you may request that the Court appoint you as lead plaintiff by Friday, January 5, 2007. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether to serve as lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood takes leading roles in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca