HARTFORD, Conn., Oct. 5, 2007 (PRIME NEWSWIRE) -- 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 Northern District of California on behalf of all persons who purchased the common stock of BigBand Networks, Inc. ("BigBand") (Nasdaq:BBND) pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with its March 14, 2007 initial public offering (the "IPO" or the "Offering").
The Complaint charges that BigBand and certain of its officers, directors and underwriters violated federal securities laws. Specifically, on March 20, 2007, BigBand closed its IPO of 12.3 million shares at $13.00 per share for net proceeds of $148.8 million pursuant to the Registration Statement. The complaint alleges that the Registration Statement failed to disclose that BigBand was having difficulty integrating and customizing its switched digital video technology, that BigBand's past results were not indicative of its future operations and that the viability of the Company's cable modem termination system business was in doubt. Due to defendants' positive statements and failure to disclose the above adverse facts, BigBand stock traded as high as $21.43 per share on May 3, 2007.
On August 2, 2007, BigBand issued a press release announcing disappointing second quarter 2007 results. On this news, BigBand's stock price fell from $13.98 per share on August 2, 2007 to close at $10.10 per share on August 3, 2007. Then on September 27, 2007, after the market closed, BigBand issued a press release revising its third quarter 2007 results. On this news, BigBand's stock price collapsed from $9.07 per share on September 27, 2007 to close at $6.40 per share on September 28, 2007 -- a one day decline of $2.67 per share or 29%.
If you are a member of the class, you may, no later than December 4, 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 P.C. 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 P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.