LOS ANGELES, Aug. 23, 2002 (PRIMEZONE) -- On August 22, 2002, Riverstone Networks, Inc. ("Riverstone" or the "Company") (Nasdaq:RSTN), a maker of Internet equipment, said that it planned to lay off about 30 percent of its workers, or 143 people, as its fiscal second-quarter sales plunged. Riverstone's sales have eroded throughout the Class Period, and the Company said sales would be $10 million to $15 million in the quarter ending August 31, down from the $55.3 million reported for the period a year earlier. Riverstone made no reference in its press release, or during its conference call of August 22, 2002, to the lawsuit filed by Stull, Stull & Brody.
Although not mentioned by Riverstone, the Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5). The action alleges that defendants issued a series of false and misleading statements concerning the Company's financial condition and sales. Specifically, defendants misled the investing community concerning the true effect that the downturn in telecom spending had upon the Company.
Riverstone securities holders should know that if they purchased Riverstone securities between August 20, 2001 and June 5, 2002, they may be a member of the class and have until September 24, 2002 to move the Court to serve as lead plaintiff, if they choose. In order to serve as lead plaintiff, however, they must meet certain legal requirements.
Please contact Michael D. Braun or Timothy J. Burke of Stull, Stull & Brody toll free at 888-388-4605 or via e-mail at info@secfraud.com if you have any questions concerning Stull, Stull & Brody's lawsuit.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.