NEW YORK, Jan. 16, 2003 (PRIMEZONE) -- Wolf Popper LLP has filed a securities lawsuit against Tellium, Inc. (Nasdaq:TELM) on behalf of persons who purchased Tellium common stock pursuant to the Company's Registration Statement and Prospectus for its initial public offering dated May 15, 2001, including those persons who purchased Tellium common stock in the open market during the period May 17, 2001 through January 31, 2002 (the "Class Period").
The plaintiff alleges that Tellium's Registration Statement and other public statements during the Class Period repeatedly touted the Company's $300 million Agreement with Quest Communications International Inc. ("Qwest"), stating, for example, that Qwest had committed to "purchase a minimum of $300 million of our optical switches over the first three years of the contract." The Registration Statement, however, failed to disclose that the Qwest Agreement had a "Termination for Convenience" clause, which allowed Qwest, at its sole option, to terminate or suspend the Agreement or any part thereof for any reason.
The true facts were first disclosed on January 31, 2002, when defendants shocked the market by disclosing that it could not rely on revenues from the Qwest Agreement to achieve its financial guidance for 2002. This statement contradicted defendants' earlier statements during the Class Period that assured investors that the Company's projected 2002 revenues would come from its existing customers. Following this disclosure, the market price of Tellium's common stock fell almost 18%, to close at $4.48 per share, down approximately 84% from the Class Period high of $27.10.
Class members have until February 21, 2003 to file motions to be appointed lead plaintiff. Class members who acquired their Tellium common in the IPO or during the Class Period, and other persons with information that may be helpful to the prosecution of the action, are urged to contact Wolf Popper LLP, a New York law firm specializing in class action litigation, concerning their rights at:
Wolf Popper LLP Michael A. Schwartz, Esq. 845 Third Avenue New York, NY 10022 Tel: 212.451.9668 Toll Free: 877.370.7703 Fax: 212.486.2093 Toll Free: 877.370.7704 Email: irrep@wolfpopper.com website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca