BALA CYNWYD, Pa., Aug. 27, 2002 (PRIMEZONE) -- Shareholders of Tellabs, Inc. ("Tellabs" or the "Company") (Nasdaq:TLAB) who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in Illinois (02-C-5011) must submit an application with the Court by September 6, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased Tellabs, Inc. securities December 11, 2000 and June 19, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Tellabs, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Illinois-based Tellabs, Inc. had represented to the public, in press releases issued throughout the Class Period, that its new products were enjoying strong demand, that the seeming slowdown in its business was due to "component-parts shortages which have been corrected" and that Tellabs' business was strong fundamentally and the Company would meet earnings and revenues expectations. The complaint alleges that these, and other, statements were materially false and misleading because, as alleged in the complaint, its new optical networking line of products were inferior to the competition and their products were not well-received or in high demand. The complaint further alleges that, contrary to its statements to the investing public, the Company's highly-touted acquisition of SALIX was a failure as sales of the product line Tellabs gained in the acquisition were falling. On June 19, 2002, Tellabs issued a press release revealing that second quarter of 2001 revenues would be 35% less than guidance reiterated only weeks before, and that the company's earnings would be breakeven instead of the consensus $0.29 per share. In reaction to the announcement, the price of Tellabs' common stock fell by 31%, from $23 per share on June 19 to $15.87 on June 20, representing a 75% decline from the Class Period high. During the Class Period, defendant Birck sold a total of 80,000 shares of Tellabs common stock at prices between $64.25 to $65.38 per share, grossing proceeds of more than $5.18 million.
If you purchased Tellabs, Inc. securities between December 11, 2000 and June 19, 2001, you may be a member of the class and have until September 6, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca