RADNOR, Pa., Oct. 6 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Delaware on behalf of all purchasers of securities of Harris Stratex Networks, Inc. ("Harris Stratex" or the "Company") from January 29, 2007 to July 30, 2008, inclusive (the "Class Period") including shareholders of Stratex Networks, Inc. who exchanged shares of Stratex Networks, Inc. for shares of Harris Stratex pursuant or traceable to the Company's Registration Statement and Prospectus.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbtklaw.com.
The Complaint charges Harris Stratex and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Harris Stratex designs, manufactures, and sells a range of wireless networking products, solutions, and services to mobile and fixed telephone service providers, private network operators, government agencies, transportation and utility companies, public safety agencies, and broadcast system operators.
More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had understated its cost of sales; (2) that the Company had misstated its pre- tax income from 2005 through 2008; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (4) that the Company lacked adequate internal and financial controls; (5) that the Company's financial statements were materially false and misleading at all relevant times; and (6) that the Company's Registration Statement was false and misleading at all relevant times.
On July 30, 2008, the Company announced that it had discovered serious accounting errors which caused the reported financial statements for fiscal years 2005 through 2007 and the first three quarters of 2008 to be incorrect. The Company stated that these financial statements should no longer be relied upon, and that the Company would restate its financial statements for all of these periods. The Company further stated its belief that these errors were the result of one or more material weaknesses in its system of internal controls, and that the cumulative effect of these errors would decrease the Company's previously reported pre-tax income by between approximately $18 million and $25 million. Upon the release of this news, shares of the Company's stock fell $3.89 per share, or 34.61 percent, to close on July 31, 2008 at $7.35 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/
If you are a member of the class described above, you may, not later than November 14, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
David M. Promisloff, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbtklaw.com
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