COLCHESTER, Conn., Oct. 19, 2007 (PRIME NEWSWIRE) -- Today, Scott+Scott, LLP filed a class action against BigBand Networks, Inc. ("BigBand Networks" or the "Company") (Nasdaq:BBND) and certain officers and directors in the U.S. District Court for the Northern District of California. The action is on behalf of BigBand Networks common stock purchasers on its Initial Public Offering on March 14, 2007, and on the open market from March 14, 2007 through September 27, 2007, inclusive (the "Class Period"), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's business and operations and that, as a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased BigBand Networks stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than December 3, 2007. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or visit the Scott+Scott website, http://www.scott-scott.com, for more information. There is no cost or fee to you.
It is alleged that Defendants made false and misleading statements during the Class Period regarding the Company's readiness to supply the market with fully developed and robust technologies and products. Defendants' false and misleading statements served to conceal the fact that the Company faced serious difficulties with the deployment of its switched digital video ("SDV") technology, as well as the viability of its cable modem termination ("CMTS") business.
On September 28, 2007, the Company announced shocking news of the true dimensions of its product development woes, which were frustrated by the very customer technologies and hardware that the BigBand products were purportedly designed to work with. The Company's disastrous financial performance knocked as much as $23 million off the revenue guidance for the third quarter. On this news, shares of BigBand Networks stock fell nearly $2.67 or 29 percent on volume of 6.8 million shares to close on September 28, 2007 at $6.40 per share.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. Please visit our website at www.scott-scott.com for current information on the litigation of major securities, antitrust, employment and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca