RADNOR, Pa., Oct. 18 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of those who purchased or otherwise acquired BigBand Networks, Inc.'s ("BigBand" or the "Company") common stock pursuant or traceable to the Company's March 14, 2007 Initial Public Offering (the "IPO" or the "Offering")(NASDAQ:BBND).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at .
The Complaint charges BigBand, certain of its officers and directors, and the Underwriters of the Company's IPO with violations of sections 11, 12(a)(2) and 15 of the Securities Act of 1933. BigBand develops, markets, and sells network-based platforms that enable cable operators and telephone companies to offer video, voice and data services to subscribers. More specifically, the Complaint alleges that in connection with the Company's IPO, the Registration Statement failed to disclose or indicate the following: (1) that the Company's switched digital video ("SDV") products suffered from interoperability issues with regard to certain video infrastructure systems; (2) that the integration of the Company's SDV products required significant software customization and integration; (3) as such, growth of the Company's SDV products and sales was stagnant; (4) that, as a result of the above, the Company would be forced to recognize the revenue associated with its SDV product sales over an extended period of time; (5) that the Company had shipped excess amounts of TelcoTV inventory to customers such as Verizon, which reduced future demand for these products; and (6) that the Company lacked adequate internal and financial controls.
On March 14, 2007, the Company completed its IPO. In connection with its IPO, the Company filed a Registration Statement with the SEC. The IPO was a financial success for the Company and certain selling stockholders, as they sold 10.7 million shares of stock to investors at a price of $13.00 per share, for gross proceeds of $139.1 million.
On August 2, 2007, the Company shocked investors when it announced guidance for its third quarter 2007 and year-end 2007. Specifically, the Company stated that third quarter net revenues would be $54 to $58 million, and earnings (loss) per share ("EPS") would be ($0.01) to $0.03. Additionally, the Company stated that its net revenues would be in the range of $225 to $230 million for fiscal year 2007, and EPS would be in the range of $0.03 to $0.08. On this news, shares of the Company's stock fell $3.88 per share, or 27.75 percent, to close on August 3, 2007 at $10.10, on unusually heavy trading volume.
Then on September 27, 2007, the Company revised its revenue outlook for the third quarter of 2007, and indicated that revenue would be in the range of $35 to $39 million, well below its previous guidance of $54 to $58 million for the quarter. The Company revealed that the lower revenue outlook resulted from the Company deploying SDV across a number of customers and configurations, which required significant software customization and integration. Additionally, the Company disclosed that it had experienced a slowdown in TelcoTV revenues as its major customer worked through existing inventory. As a result, the Company stated that it expected to report an operating loss for the third quarter of fiscal year 2007. On this news, shares of the Company's stock declined an additional $2.67 per share, or almost 30 percent, to close on September 28, 2007 at $6.40 per share, also on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/.
If you are a member of the class described above, you may, not later than December 3, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP CONTACT: Darren J. Check, Esq., or Richard A. Maniskas, Esq., both of Schiffrin Barroway Topaz & Kessler, LLP, +1-888-299-7706, +1-610-667-7706, Web site: http://www.sbtklaw.com/
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