RADNOR, Pa., June 17, LAWFUEL – The Law News Network – The followin…

RADNOR, Pa., June 17, LAWFUEL – The Law News Network – The following statement was issued today by the law firm of Schiffrin & Barroway, 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 purchasers of the publicly traded securities of Ditech Communications Corp. (Nasdaq: DITC – News; “Ditech” or the “Company”) between August 24, 2004 and May 26, 2005, inclusive (the “Class Period”).

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, LLP (Marc A. Topaz, Esq. or Darren J. Check, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected]

The complaint charges Ditech and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Ditech is a Mountain View-based designer and marketer of telecommunications equipment and provides network operators with echo cancellation and voice processing systems. According to the complaint, defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: The complaint alleges that defendants’ Class Period representations regarding Ditech were materially false and misleading when made for the following reasons: (1) that the highly-touted Voice Quality Assurance (“VQA”) orders was a huge disappointment because VQA orders were not as secured as defendants represented because the purported new clients were under no obligation to purchase Ditech’s services; thus, Ditech’s positive statements about its VQA success were lacking in any reasonable basis when made; (2) that the Sprint/Nextel merger would not be a positive development for Ditech; and (3) that the Sprint/Nextel merger presented a serious threat to Ditech’s business because it was foreseeable that Ditech would experience a shortfall in revenue received from Nextel because of the merger.

On November 3, 2004, Ditech issued a press release announcing poor second quarter results due to a “delay” in shipping the highly-touted VQA orders from Asia and weaker domestic demand for wireless products. On November 4, 2004, the price of Ditech stock dropped $5.69 per share, or 25.53 percent, to $16.60 per share, on unusually heavy trading volume. On May 26, 2005, Ditech announced that orders from Nextel declined substantially as a result of the Nextel/Sprint merger, and would continue to do so. On news of this, shares of Ditech, on May 27, 2005, fell $4.80 per share or 38.13 percent to close at $7.79 per share 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, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform and has recovered billions of dollars on behalf of both individual investors and institutional investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.

If you are a member of the class described above, you may, not later than August 15, 2005 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, or other counsel of your choice, to serve as your counsel in this action.

CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Darren J. Check, 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 [email protected]

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