HARTFORD, Conn., Nov. 7, 2006 (PRIMEZONE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the common stock of Ikanos Communications, Inc. ("Ikanos" or the "Company") (Nasdaq:IKAN) pursuant and/or traceable to the Company's Registration Statement and Prospectus for its initial public offering on September 22, 2005, (the "IPO") or its secondary public offering (the "Secondary Offering") on March 8, 2006.
The complaint alleges that Ikanos and certain of its officers, directors and underwriters violated federal securities laws by issuing a series of materially false statements. The Registration Statements and Prospectuses issued in connection with the IPO and Secondary Offering were negligently prepared and included representations that the Company's business had grown due to successful deployments in Japan. According to the Complaint, the deployments in Japan had grown because Ikanos had shipped excessive product to Japanese customers in excess of those customers' needs and the Registration Statements and Prospectuses failed to disclose that the Company's future results would be adversely affected by this practice.
On October 4, 2006, Ikanos issued a press release announcing preliminary third quarter revenue results and stated that the revenue expectations were $4-6 million lower than expected, and the fourth quarter revenue results would be adversely affected due to, among other things, "carriers in Japan () currently working through their existing equipment levels." On this news, the stock collapsed to as low as $7.23 per share, before closing at $7.76 per share.
If you are a member of the class, you may, no later than January 5, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.