Case Page

 

Case Status:    DISMISSED    
On or around 04/19/2002 (Other)

Filing Date: April 09, 1999

According to the Company’s FORM 10-Q For The Quarterly Period Ended March 31, 2002, the court dismissed these actions without leave to amend on February 14, 2000 and the plaintiffs appealed the dismissal to the U.S. Court of Appeals for the Ninth Circuit. The appeal was taken under submission by the court of Appeals following the filing of briefs by the parties and the presentation of oral argument on July 11, 2001. On March 15, 2002, the Court of Appeals affirmed the district court’s judgment, dismissing the complaint without leave to amend. On March 28, 2002, plaintiffs filed a Petition for Rehearing in the Ninth Circuit. On April 5, 2002, the Ninth Circuit denied the plaintiffs' Petition for Rehearing.

As previously reported by the Company’s FORM 10-Q For The Quarterly Period Ended September 30, 1999, beginning in April 1999, several purported class action suits were filed in the U.S. District Court for the Northern District of California, alleging violations of the federal securities laws against the Company and certain of its officers and directors in connection with the Company's reporting of its financial results for the period ending December 31, 1998. These actions have just been commenced and no trial dates have been set. In July 1999, the Court entered orders consolidating all existing class actions into a single action and appointing a lead plaintiff and lead plaintiff's co-counsel. A consolidated amended complaint was filed in September 1999 and the individual defendants filed a motion to dismiss the complaint on October 8, 1999. The motion is scheduled for hearing by the court on January 21, 2000.

The original complaint charges FVC and certain officers and directors with violations of the Securities Exchange Act of 1934. Specifically, the complaint alleges that in order to inflate the price of FVC stock, the Company and the Individual Defendants falsely reported the Company's financial results for the fourth quarter of fiscal year 1998 through improper revenue recognition, thereby materially overstating FVC's revenue, income and earnings per share in the fourth quarter of 1998, in violation
of GAAP. Furthermore, FVC's insiders sold 535,000 shares of their FVC stock for proceeds exceeding $7.3 million.

The complaint further alleges that on or around April 6, 1999, FVC disclosed that it was reducing its previously announced revenues for the fourth quarter of 1998 by approximately $7.0 to $7.5 million to defer revenue on inventory of the Company's products held by Nortel on December 31, 1998. Thus, sales for the fourth quarter of 1998 would only be approximately $4.7 to $5.2 million (as opposed to the $12.3
million in revenues previously reported) and earnings per share were being reduced from a profit of $.07 to a net loss per share of approximately $0.20 to $0.22. Contemporaneously, FVC announced that revenues for the first quarter of 1999 were
expected to be significantly below analyst expectations with a significant loss for the quarter, revenues would be between $8.0 and $8.5 million, and the net loss per share between $0.20 and $0.22. Upon these disclosures, the price of FVC stock fell $10-7/16 to $6-15/16, nearly 60%, in trading of 4.85 million shares, almost 18 times the three-month daily average.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FVCX
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. California
DOCKET #: 99-CV-1815
JUDGE: Hon. Charles R. Breyer
DATE FILED: 04/09/1999
CLASS PERIOD START: 01/21/1999
CLASS PERIOD END: 04/06/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  3. Schubert & Reed LLP
    Two Embarcadero Center, Suite 1050, Schubert & Reed LLP, CA 94111
    415.788.4220 415.788.0161 · mail@schubert-reed.com
  4. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 99-CV-1815
JUDGE: Hon. Charles R. Breyer
DATE FILED: 09/27/1999
CLASS PERIOD START: 01/21/1999
CLASS PERIOD END: 04/06/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (Westfield, NJ)
    220 St. Paul Street, Bernstein Litowitz Berger & Grossmann LLP (Westfield, NJ), NJ 07090
    908.928.1700 908.301.9008 · blbg@blbglaw.com
  2. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  3. Jeffrey S. Abraham (New York)
    60 East 42nd St - Suite 4700, Jeffrey S. Abraham (New York), NY 10165
    212.692.0555 ·
  4. Kaplan Fox & Kilsheimer, LLP (former New York, NY)
    805 Third Avenue, 22nd Floor, Kaplan Fox & Kilsheimer, LLP (former New York, NY), NY 10022
    212.687.1980 212.687.7714 · info@kaplanfox.com
  5. Law Offices of Bruce G. Murphy
    265 Llwyds Lane, Law Offices of Bruce G. Murphy, FL 32963
    561.231.4202 ·
  6. Lionel Z. Glancy
    1801 Avenue of the Stars Suite 308, Lionel Z. Glancy, CA 90067
    310.201.9150 ·
  7. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
  8. Milberg Weiss Bershad Hynes & Lerach LLP (Seattle, WA)
    1001 Fourth Avenue - Suite 3200, Milberg Weiss Bershad Hynes & Lerach LLP (Seattle, WA), WA 98154
    206.839.0730 ·
  9. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  10. Schubert & Reed LLP
    Two Embarcadero Center, Suite 1050, Schubert & Reed LLP, CA 94111
    415.788.4220 415.788.0161 · mail@schubert-reed.com
  11. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  12. Stull, Stull & Brody (Los Angeles)
    10940 Wilshire Boulevard - Suite 2300, Stull, Stull & Brody (Los Angeles), CA 90024
    310.209.2468 ·
  13. Weiss & Yourman (Los Angeles, CA)
    10940 Wilshire Blvd - 24th Floor, Weiss & Yourman (Los Angeles, CA), CA 90024
    310.208.2800 310.209.2348 · info@wyca.com
  14. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
  15. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
No Document Title Filing Date