NEW YORK, December 24, 2003 (PRIMEZONE) -- On December 15, 2003, Abbey Gardy, LLP commenced a Class Action lawsuit in the United States District Court for the Northern District of California, located at 450 Golden Gate Avenue, San Francisco. The action was assigned to Judge Fogel. The action has been brought as a class action on behalf of a class (the "Class") of all persons who purchased or acquired Redback Networks, Inc. ("Redback" or the "Company") (Nasdaq:RBAKQ) between April 12, 2000, the day the Company announced its financial results for its first quarter ended March 31, 2000 and October 10, 2003, the day the Company announced that the Securities and Exchange Commission (the"SEC") was investigating various transactions between the Company and Qwest Communications, Inc. ("Qwest")(the "Class Period"). A copy of the complaint is available from the Courthouse of from Abbey Gardy, LLP.
The Complaint (No. C-03-5642) is captioned: Baker v. Joel M. Arnold, Thomas L. Cronan III, Kevin A. DeNuccio, Pierre R. Lamond, Vinod Khosla, Vivek Ragavan and Dennis P. Wolf. Joel M. Arnold ("Arnold") was hired as Senior Vice President; Thomas L. Cronan III ("Cronan") has served as Redback's Senior Vice President and Chief Financial Officer; Kevin A. DeNuccio ("DeNuccio") has been Redback's President and Chief Executive Officer; Pierre R. Lamond ("Lamond") has served as Redback's Chairman of the Board; Vinod Khosla ("Khosla") is a director of Redback; Vivek Ragavan ("Ragavan") served as Redback's President, Chief Operating Officer and Director; and Dennis P. Wolf ("Wolf") has served as Redback's Senior Vice President and Chief Financial Officer. Arnold, Cronan, DeNuccio, Lamond, Khosla, Ragavan and Wolf are hereinafter referred to as the Defendants. The Company is not named as a defendant because it has filed for Chapter 11 bankruptcy protection. The Complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of Redback securities.
The Complaint alleges that Defendants made a series of false and misleading statements starting on April 12, 2000. The Complaint alleges that the press releases issued on April 12, 2000, July 12, 2000, October 13, 2000, January 17, 2001, April 11, 2001, July 11, 2001, October 10, 2001, January 16, 2002, April 10, 2002, July 10, 2002, October 9, 2002 and January 15, 2002 were materially false and misleading. In addition, the Complaint alleges that the Company's Form 10-Q's and Form 10-K filed with the SEC on May 15, 2000, August 10, 2000, November 13, 2000, April 2, 2001, May 15, 2001, August 14, 2001, March 27, 2002, April 22, 2002, August 14, 2002, November 14, 2002 and March 31, 2003 were materially false and misleading. The Complaint alleges that each of these above referenced press releases and SEC filings were materially false and misleading because, during the Class Period Defendants failed to disclose that the only way that Redback was able to report record financial results was because shares of Redback stock were being given to Qwest insiders in exchange for sales contracts from Qwest. In fact, Qwest did not need or want the large quantities of product it had ordered and, in fact, had no strong obligation to purchase the products. On November 3, 2003, Redback filed for Chapter 11 Bankruptcy protection. After trading as high as $179.12 during the Class Period, Redback's shares are now worthless.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Redback securities during the Class Period. If you purchased or otherwise acquired Redback securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Redback Networks securities during the Class Period, you may, no later than February 21, 2004 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The law sets froth specific criteria that a lead plaintiff must meet in order to adequately represent the interests of the class. The law sets forth that the class member with the largest financial interest in the litigation is the most adequate shareholder to lead the litigation. In addition, 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 plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact: