CACSE Carrier Access (MM)

Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") (http://www.lerachlaw.com/cases/carrieraccess/) today announced that a class action has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of Carrier Access Corporation ("Carrier Access") (NASDAQ:CACSE) publicly traded securities during the period between October 21, 2003 and May 20, 2005 (the "Class Period"). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin at 800-449-4900 or 619-231-1058, or via e-mail at wsl@lerachlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/carrieraccess/. 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. The complaint charges Carrier Access and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Carrier Access designs, manufactures and sells converged access equipment to wireline and wireless carriers. The complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding the Company's financial results and its business prospects. As a result of these false statements, the Company's shares traded at inflated levels during the Class Period, allowing the defendants to use the Company's shares as currency in its acquisition of Paragon Networks and to sell 6 million shares to the public in a secondary offering, raising proceeds of $78 million. However, according to the complaint, by July 20, 2004, due to the defendants' concerns about the government's stance towards accounting fraud, the Company announced a reduction in the Company's projections, sending its shares down 37%, a loss of $4.73 to $8.06. On May 5, 2005, the Company issued a press release in which it announced it had received a Nasdaq Staff Determination letter which indicated that "although the company filed its Form 10-K for the fiscal year ended December 31, 2004, the filing did not include management's assessment of its internal controls over financial reporting and the associated auditor attestation report . . . ." As a result, the Company's stock was subject to delisting on the Nasdaq Stock Market. Then on May 20, 2005, the Company issued a press release stating that it was in the process of performing a detailed review of all significant customer relationships and as part of those reviews was evaluating the propriety of the timing of revenue and cost recognition and other revenue recognition issues. The release stated: "At this point in time, the Company has determined that certain revenues and direct costs have been recorded in incorrect periods. The amounts that have been quantified to date are significant and, as a result, previously issued financial statements for the year ended December 31, 2004, and certain interim periods in each of the years ended December 31, 2004, and 2003, will be restated." On this news the Company's stock fell to $4.60 per share. Plaintiff seeks to recover damages on behalf of all purchasers of Carrier Access publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Lerach Coughlin, a 150-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, 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. Lerach Coughlin lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.