Glancy Binkow & Goldberg LLP Announces Lead Plaintiff Deadline In The Class Action Lawsuit Against Tellabs, Inc.
Glancy Binkow & Goldberg LLP announces that purchasers of the securities of Tellabs, Inc. (“Tellabs” or the “Company”) (Nasdaq: TLAB) between October 26, 2010 and April 26, 2011, inclusive (the “Class Period”), have until March 25, 2013 to file a motion with the Court to be appointed as lead plaintiff. The shareholder lawsuit was filed in the United States District Court for the Northern District of Illinois.
The Complaint charges Tellabs and certain of the Company's executive officers with violations of federal securities laws. Tellabs designs, develops and supports telecommunications networking products. The Complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Tellabs' business, operations and prospects. Specifically, the Complaint alleges that the defendants failed to disclose, among others: (1) that in the fourth quarter of 2010, the Company was changing its distribution arrangement with a customer; (2) that this change to the distribution arrangement masked that Tellabs' business was declining substantially faster than the Company had represented to the public; (3) that the Company's North American business was slowing at a greater rate than the Company had represented to the public; and (4) that, as a result of the above, the defendants' positive statements about the Company's business, operations and prospects lacked a reasonable basis.
On January 25, 2011 Tellabs announced its financial results for the fourth quarter of 2010. While the Company's revenue of $410.5 million was purportedly in line with the low end of its previously issued revenue guidance, Tellabs disclosed that its quarterly revenue had substantially benefited from a change to its distribution agreement with a customer. On this news, shares of Tellabs declined $1.35 per share, almost 20%, to close on January 25, 2011 at $5.69 per share, on unusually heavy volume.
Thereafter, on April 26, 2011, the Company announced its financial results for the first quarter of 2011, which further reflected substantial weakness in its North American business. On this news, shares of Tellabs further declined $0.49 per share, almost 10%, to close on April 26, 2011 at $4.90 per share, on unusually heavy volume.
If you purchased Tellabs securities between October 26, 2010 and April 26, 2011, you may move the Court no later than March 25, 2013 to serve as lead plaintiff; however, you must meet certain legal requirements. To be a member of the Class you need not take action at this time; you may retain counsel of your choice or take no action and remain an absent Class member. To learn more about this action, or if you have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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