BOCA RATON, Fla., April 6, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has filed a class action in the United States District Court for the Northern District of California on behalf of all individuals and institutional investors that purchased the publicly traded securities of Turnstone Systems, Inc. ("Turnstone" or the "Company") (Nasdaq:TSTN) between June 5, 2000 and January 2, 2001, inclusive, including those who acquired shares in connection with Turnstone's secondary offering on September 26, 2000 (the "Class Period").
The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's primary product, the CX100, including misrepresentations in the Company's offering documents filed in connection with Turnstone's secondary offering. Specifically, contrary to defendants' continuous representations, the CX100 was laden with problems, including malfunctioning chips, blown capacitors and inaccurate calibration, causing the Company's key customers to return the product. On January 2, 2001, Turnstone shocked the market by announcing that its 4th Q00 revenue would be "substantially below" market estimates because of canceled and reduced orders of its product, which information was known to defendants throughout the Class Period. In this same press release, the Company also announced that it expected to take a $13.0 to $15.5 million charge to increase its inventory reserves and debt reserves, causing Turnstone to forecast an operating loss of $12 to $14 million for the quarter.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by May 28, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.