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Case Status:    SETTLED
On or around 10/09/2003 (Date of order of final judgment)

Filing Date: March 28, 2001

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.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: TSTN
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 #: 01-CV-1256
JUDGE: Hon. Saundra B. Armstrong
DATE FILED: 03/28/2001
CLASS PERIOD START: 09/21/2000
CLASS PERIOD END: 01/02/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (former San Diego)
    12544 High Bluff Drive, Suite 150, Bernstein Litowitz Berger & Grossmann LLP (former San Diego), CA 92130
    858.793.0070 858.793.0323 · blbg@blbglaw.com
  2. Law Offices of Marc S. Henzel (Lawrence)
    335 Central Avenue, Law Offices of Marc S. Henzel (Lawrence), NY 11559
    516.374.0707 516.295.3473 · securitiesfraud@comcast.net
  3. 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
  4. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 01-CV-1256
JUDGE: Hon. Saundra B. Armstrong
DATE FILED: 03/10/2003
CLASS PERIOD START: 06/05/2000
CLASS PERIOD END: 01/02/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Bernstein Litowitz Berger & Grossmann LLP (former San Diego)
    12544 High Bluff Drive, Suite 150, Bernstein Litowitz Berger & Grossmann LLP (former San Diego), CA 92130
    858.793.0070 858.793.0323 · blbg@blbglaw.com
No Document Title Filing Date
No Document Title Filing Date