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Turnstone Systems, Inc. Conclusion: According to the docket, on October 9, 2003, the Court entered the Order by U.S. District Judge Saundra B. Armstrong granting the motions for final approval of settlement, for approval of plan allocation of settlement proceeds, and the motion to certify class action. The Court also awarded plaintiffs' counsel reimbursement of litigation expenses in the amount of $104,263.60. The Court further entered the Final Judgment and Order of Dismissal with Prejudice.
Turnstone Systems, Inc. announced that on July 25, 2003, the U.S. District Court for the Northern District of California preliminarily approved a settlement of a purported class action suit that was brought against the company, certain of its officers and directors and its underwriters on behalf of persons who purchased common stock issued pursuant to the company's secondary stock offering in September 2000. The suit was settled for $7.0 million, of which insurance for the company's directors and officers will pay approximately $6.1 million and the company will contribute approximately $0.9 million in cash. The settlement is conditioned upon, among other things, notice to the company's stockholders of the settlement and final approval by the United States District Court.
The original complaint charges defendants with violations of the Securities Exchange Act of 1934. The complaint alleges that contrary to defendants' representations during the Class Period, Turnstone's CX100 product was fraught with problems, including blown capacitors, malfunctioning chips, and inaccurate calibration of the CX100. As a result, and contrary to the representations in the Registration Statement/Prospectus, the CX100 product was unreliable, inaccurate and inefficient in deploying DSL services to Turnstone's customers. Moreover, Turnstone's key customers were returning the product as a result of the malfunctioning of the CX100. After the market closed on January 2, 2001, Turnstone issued another press release warning investors that its 4thQ 00 revenue would be substantially below market estimates because its CLEC customers had cancelled and reduced their orders. As a result, the Company announced revenue of $26 million to $28 million for the 4thQ 00, 37% lower than consensus market analyst estimates. In the same press release, the Company also disclosed that it expected to take a $13.0 to $15.5 million charge to increase its inventory reserves and bad debt reserves, thus causing Turnstone to forecast an operating loss of $12 million to $14 million for the quarter.
INDUSTRY CLASSIFICATION:
SIC Code: 3699
Sector: Technology
Industry: Communications Equipment
| COMPANY/ISSUER NAME: | Turnstone Systems, Inc. |
| COMPANY/ISSUER TICKER: | TSTN |
| COMPANY WEBSITE: | http://www.turnstone.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| The Louisiana School Employees’ Retirement System, et al. v. Turnstone Systems, Inc., et al. | |||||||||||||||||
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| REFERENCE COMPLAINT | |||||||||||||||||
| In Re: Turnstone Systems, Inc. Securities Litigation | |||||||||||||||||
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| OTHER DOCUMENTS | |||
| Complaint for Violation of the Federal Securities Laws | |||
| Case Name and/or Number: Huang, et al. v. Turnstone Systems, Inc. | |||
| Type: Complaint | Date on the document: 04/04/2001 | ||
| Complaint for Violation of the Federal Securities Laws | |||
| Case Name and/or Number: Riskin, et al. v. Turnstone Systems, Inc. | |||
| Type: Complaint | Date on the document: 04/05/2001 | ||
| Complaint For Violation Of The Federal Securities Laws | |||
| Case Name and/or Number: Bojsza, et al. v. Turnstone Systems, Inc. | |||
| Type: Complaint | Date on the document: 04/10/2001 | ||
| Notice Of Related Cases | |||
| Case Name and/or Number: Bojsza, et al. v. Turnstone Systems, Inc. | |||
| Type: Notice | Date on the document: 04/10/2001 | ||
| Complaint for Violation of the Federal Securities Laws | |||
| Case Name and/or Number: Greenberg and Knepper, et al. v. Turnstone Systems, Inc. | |||
| Type: Complaint | Date on the document: 04/12/2001 | ||
| Declaration of Elizabeth P. Lin | |||
| Case Name and/or Number: Bojsza, et al. v. Turnstone Systems, Inc. | |||
| Type: Declaration | Date on the document: 05/29/2001 | ||
| Declaration of Elizabeth P. Lin in Support of Motion to Consolidate Cases | |||
| Case Name and/or Number: Huang, et al. v. Turnstone Systems, Inc. | |||
| Type: Declaration | Date on the document: 05/29/2001 | ||
| Declaration of Elizabeth P. Lin in Support of Motion to Consolidate Cases | |||
| Case Name and/or Number: Riskin, et al. v. Turnstone Systems, Inc. | |||
| Type: Declaration | Date on the document: 05/29/2001 | ||
| Declaration of Elizabeth P. Lin in Support of Motion to Consolidate Cases | |||
| Case Name and/or Number: Greenberg, et al. v. Turnstone Systems, Inc. | |||
| Type: Declaration | Date on the document: 05/29/2001 | ||
| Notice Of Motion, Motion And Memorandum Of Points And Authorities In Support Of Motion To Consolidate Related Cases, Appoint Lead Plaintiff, And For Approval Of Lead Counsel | |||
| Case Name and/or Number: Bojsza, et al. v. Turnstone Systems, Inc. | |||
| Type: Motion | Date on the document: 05/29/2001 | ||
| Notice, Motion & Memorandum in Support of Motion to Consolidate Cases | |||
| Case Name and/or Number: Huang, et al. v. Turnstone Systems, Inc. | |||
| Type: Motion | Date on the document: 05/29/2001 | ||
| Notice, Motion & Memorandum in Support of Motion to Consolidate Cases | |||
| Case Name and/or Number: Riskin, et al. v. Turnstone Systems, Inc. | |||
| Type: Motion | Date on the document: 05/29/2001 | ||
| Notice, Motion & Memorandum in Support of Motion to Consolidate Cases | |||
| Case Name and/or Number: Greenberg, et al. v. Turnstone Systems, Inc. | |||
| Type: Motion | Date on the document: 05/29/2001 | ||
| Proposed Order Consolidating Related Cases, Appoint Lead Plaintiff & Counsel | |||
| Case Name and/or Number: Huang, et al. v. Turnstone Systems, Inc. | |||
| Type: Order | Date on the document: 05/29/2001 | ||
| Proposed Order Consolidating Related Cases, Appoint Lead Plaintiff & Counsel | |||
| Case Name and/or Number: Riskin, et al. v. Turnstone Systems, Inc. | |||
| Type: Order | Date on the document: 05/29/2001 | ||
| Proposed Order Consolidating Related Cases, Appoint Lead Plaintiff & Counsel | |||
| Case Name and/or Number: Bojsza, et al. v. Turnstone Systems, Inc. | |||
| Type: Order | Date on the document: 05/29/2001 | ||
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