PHILADELPHIA, March 8, 2002 (PRIMEZONE) -- Berger & Montague, P.C., (www.bergermontague.com) filed a class action against certain of the officers and directors of Enterasys Networks, Inc. (NYSE:ETS) in the United States District Court for the District of New Hampshire, on behalf of all persons or entities who purchased Enterasys Networks, Inc. common stock during the period from January 26, 2001 through February 1, 2002.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between September 26, 2001 and February 1, 2002, thereby artificially inflating the price of Enterasys securities. Throughout the Class Period, as alleged in the complaint, defendants issued statements regarding Enterasys' quarterly financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The complaint alleges that these statements were materially false and misleading because, among other things, (i) the Company's Asia Pacific region operations, which represented a material portion of the Company's revenues, was improperly recognizing revenues in violation of the Company's accounting policies and Generally Accepted Accounting Principles. As a result, Enterasys' operating results were materially misrepresented and overstated; (ii) Enterasys lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) based on the foregoing, defendants' statements concerning the prospects of Enterasys were lacking in a reasonable basis at all times.
On February 1, 2002, after the close of the market, Enterasys shocked the market when it announced that it would be delaying the release of its fourth quarter and fiscal year financial results because it was reviewing the revenue recognition practices of its Asia Pacific operations. The Company also announced that it was being investigated by the SEC. In response to these disclosures, on February 4, 2002, the first day of trading following the Company's announcement, shares of Enterasys closed at $4.20 per share, a loss of more than 61% since its previous close of $10.80 on February 1, 2002, on volume of more than 35 million shares traded.
Plaintiff seeks to recover damages on behalf of all purchasers of Enterasys Networks, Inc. common stock during the Class Period (the "Class"). The plaintiff is represented by Berger & Montague, P.C. which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
The law firm of Berger & Montague, P.C. has 55 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm has represented investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In re: IKON Office Solutions Securities Litigation, Civil Action No. 98-4286 (E.D.Pa) (partial settlement for $111 million approved May, 2000).
"...(Y)ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here...I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 77-9 (N.D.Ill.) (settled in 1999 for $220 million).
If you purchased Enterasys Networks, Inc. common stock during the period from September 26, 2001 through February 1, 2002, inclusive, you may, no later than April 8, 2002, move to be appointed lead plaintiff. 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 lead plaintiff.
If you purchased Enterasys Network, Inc. common stock, or have any questions concerning this notice or your rights with respect to this matter, you may contact:
Sherrie R. Savett, Esquire Barbara A. Podell, Esquire Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Telephone: (888) 891-2289 or (215) 875-3000 Fax: (215) 875-5715 Website: www.bergermontague.com e-mail: InvestorProtect@bm.net
More information on this and other class actions is available on the Class Action Newsline at www.primezone.com/ca