COLCHESTER, Conn., June 11 – LAWFUEL – The Law News Network — On behalf of client shareholders, Scott + Scott LLC today announced that a class action has been commenced in the United States District Court for the Northern District of California for the benefit of purchasers of the common stock or other securities of Brocade Communication Systems, Inc. between February 21, 2001 and May 15, 2005, inclusive (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than July 18, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel Amy K. Saba at 800-332-2259 or via e-mail at [email protected] 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 alleges that throughout the Class Period, Defendants issued materially false and misleading financial statements to the investing public. On May 16, 2005, the Company issued a press release announcing the restatement of its fiscal 2001 to fiscal 2004 earnings. The release stated that “the Company will restate its financial statements for the fiscal years ending 2002 through 2004 to record additional charges for stock-based compensation expense.” The release noted that the Company estimated the impact of the restatement would be to reduce fiscal 2001 and fiscal 2002 earnings per share by up to $0.11 and $0.19, respectively. The Company also estimated that fiscal 2003 and fiscal 2004 earnings per share would be reduced as well. As a result of this announcement, Brocade’s stock dropped to $4.13 per share, compared to the $40+ per share prices it traded at during the Class Period.
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