CONSHOHOCKEN, PA–LAWFUEL Legal News, Legal Jobs -Nov 7, 2006 — Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired common stock of Ikanos Communications, Inc. (“Ikanos” or the “Company”) (NASDAQ:IKAN – News) pursuant and or traceable to the Company’s Registration Statement and Prospectus for its initial public offering on September 22, 2005, (the “IPO”) or its secondary public offering (the “Secondary”) on March 8, 2006 seeking to pursue remedies under the Securities Act of 1933. The lawsuit was filed against Ikanos and certain officers, directors and underwriters (“Defendants”).
If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at [email protected] and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than January 5, 2006 to serve as a lead plaintiff for the Class. 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 Defendants violated the Securities Act of 1933. Specifically, the complaint alleges that the Registration Statements and Prospectuses issued in connection with the Company’s IPO and Secondary contained untrue statements of material fact or omitted to state other facts necessary to make the statements made therein not misleading. In particular, the Company’s Registration Statements and Prospectuses contained representations that its business had grown due to positive deployments in Japan. However, as alleged in the complaint, the deployments in Japan had grown because Ikanos had shipped excessive product to Japanese customers in excess of their needs.
On October 4, 2006, Ikanos announced preliminary third quarter revenue results and stated that revenues would be $4 million to $6 million lower than expected and that fourth quarter results would be adversely affected by carriers in Japan currently working through their existing equipment levels. In reaction to this news, shares of Ikanos fell to $7.76 per share, a one-day drop of 32.8%.
If you bought Ikanos securities between September 22, 2005 and March 8, 2006, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 668-4130 to speak with an advisor.