SEATTLE, Oct. 5 /PRNewswire/ -- Hagens Berman Sobol & Shapiro LLP ("Hagens Berman") (http://www.hbsslaw.com/BigBand.htm) today announced that it has filed a proposed class-action lawsuit in the United States District Court for the Northern District of California on behalf of purchasers of the securities of BigBand Networks, Inc. ("BigBand" or the "Company") (NASDAQ:BBND) after the company initial public offering ("IPO") on March 15, 2007 until September 28, 2007, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act").
If you wish to serve as lead plaintiff, you must move the Court no later than December 3, 2007. If you wish to consider joining this action as lead plaintiff, discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Reed Kathrein of Hagens Berman at 510/725-3000 or via e-mail . You can view a copy of the complaint as filed or join this class action online at http://www.hbsslaw.com/BigBand.htm. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. 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).
BigBand, which went public on March 15, 2007, claims to be a leading provider of broadband multimedia infrastructure for video, voice and data. At the time of IPO the company's customers purportedly included six of the 10 largest service providers in the U.S., and leading service providers in North America, Asia, Europe and Latin America.
The complaint charges BigBand, certain of its officers and directors, and the Company's underwriters with violations of the Securities Act. According to the complaint, defendants are responsible for untrue statements of material fact and omissions of material fact contained in the Registration filed with the SEC prior to the company's IPO. Specifically, Defendants each failed to conduct an adequate due diligence investigation into the Company prior to the IPO, and they also each failed to reveal that, at that time of the IPO, BigBand was not performing according to plan, it lacked significant controls and procedures and Defendants lacked any reasonable basis to forecast near-18 term foreseeable financial and operational results. The Company also boosted financial results in the quarter directly preceding the company's IPO on March 15, 2007.
These statements were in regard to the company's financial standing and current product offerings and were essential to the amount of shares the company could offer and the price for which they were offered. When first introduced 7.5 million shares were available at $13.00 per share, generating a grand total of $159.965 million in proceeds for defendants as well as making their shares marketable. After only six months several of the named defendants, including company insiders, sold shares worth more than $15.30 million. Suddenly, on September 27, 2007 the Company revealed to investors that the problems which existed at the time of the IPO would result in extremely disappointing results for the third quarter of 2007 -- including substantially reduced revenues as the Company's largest customer was forced to "work off" excess inventory prior to being able to acquire more product from BigBand, and that problems rolling out the Company's latest products were also having a material adverse impact upon earnings, operations and results. The company stock virtually collapsed falling 30 percent and dropping from $9 a share to just over $6.50.
Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San Francisco, Los Angeles, Boston, Chicago and Phoenix, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Hagens Berman Web site (http://www.hbsslaw.com/) has more information about the firm.
Contact: Hagens Berman Sobol & Shapiro LLP
Reed R. Kathrein
510-725-3000
http://www.hbsslaw.com/ DATASOURCE: Hagens Berman Sobol & Shapiro LLP CONTACT: Reed R. Kathrein of Hagens Berman Sobol & Shapiro LLP, +1-510-725-3000, Web site: http://www.hbsslaw.com/ http://www.hbsslaw.com/BigBand.htm
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