WASHINGTON, Nov. 9 /PRNewswire/ -- Notice is hereby given that Finkelstein Thompson LLP has filed a Class Action lawsuit in the United States District Court for the Northern District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired the common stock of BigBand Networks, Inc. ("BigBand" or the "Company") (NASDAQ:BBND) between March 14, 2007 through September 27, 2007 inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Finkelstein Thompson LLP. Please call us toll-free at (877) 337-1050 to discuss this action or to obtain a copy of the Complaint. You may also contact us by email at , or visit our website at http://www.finkelsteinthompson.com/.
The Complaint alleges that BigBand misled the investing public throughout the Class Period through their representations in the Registration Statement and Prospectus filed in connection with the Company's IPO. Specifically, Plaintiff alleges that BigBand failed to inform the public at the time of the IPO and during the Class Period that the Company was having a number of issues customizing and integrating its switched digital video services with a number of its customers. In addition, BigBand failed to disclose to investors that one if its major customers had been unable to work off excessive amounts of inventory and this would substantially affect BigBand's revenues.
The truth regarding the Company's operational status was revealed on September 27, 2007. On that date, BigBand announced that the Company expected to post an operating loss for the third quarter 2007 and would have to dramatically revise its revenue outlook. The Company stated that it expected to report revenue for the third quarter in the range of $35 to $39 million, well below the Company's previous guidance of $54 to $58 million. The Company revealed for the first time the issues its customers were having customizing the Company's switched digital video technology and that the Company's Telco-TV revenue experienced a slowdown due to a "major customer" having to "work[] through previously purchased inventory." As a result of Defendants' false and misleading Class Period statements and omissions, BigBand's stock traded at inflated levels during the Class Period. Once the Company's true financial condition was revealed, BigBand shares fell 28% in value, to close at $6.40 per share on September 28, 2007, a 51% drop from the $13 per share price during the Company's IPO.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Finkelstein Thompson LLP. Finkelstein Thompson LLP has spent almost three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, in the past decade, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers.
If you are a member of the class, you may request that the Court appoint you as lead plaintiff by no later than December 3, 2007. A lead plaintiff is a class member appointed by the Court to direct the litigation on behalf of the class. Although a class member need not be appointed as a lead plaintiff to receive a proportionate share of any proceeds of the litigation, lead plaintiffs make important decisions that could affect the prosecution of the class claims, including decisions concerning settlement. The securities laws create a rebuttable presumption that the plaintiff with the largest financial interest in the litigation is the most adequate to serve as a lead plaintiff. Any member of the purported class may move the Court to serve as lead plaintiff through the counsel of their choice and returning a form to counsel or communicating with counsel is not necessary to participate in any recovery.
If you are a BigBand shareholder and wish to discuss the case or have information relevant to the investigation, please contact our Washington, DC office toll-free at (877) 337-1050, or by email at . DATASOURCE: Finkelstein Thompson LLP CONTACT: Finkelstein Thompson LLP, +1-202-337-8000 Web Site: http://www.finkelsteinthompson.com/
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