Redback Networks, Inc. ("Redback" or the Company) manufactures and sells telecommunications equipment.

The original Complaint alleges that Defendants made a series of false and misleading statements starting on April 12, 2000. The Complaint alleges that the press releases issued on April 12, 2000, July 12, 2000, October 13, 2000, January 17, 2001, April 11, 2001, July 11, 2001, October 10, 2001, January 16, 2002, April 10, 2002, July 10, 2002, October 9, 2002 and January 15, 2002 were materially false and misleading. In addition, the Complaint alleges that the Company's Form 10-Q's and Form 10-K filed with the SEC on May 15, 2000, August 10, 2000, November 13, 2000, April 2, 2001, May 15, 2001, August 14, 2001, March 27, 2002, April 22, 2002, August 14, 2002, November 14, 2002 and March 31, 2003 were materially false and misleading. The Complaint alleges that each of these above referenced press releases and SEC filings were materially false and misleading because during the Class Period, Defendants failed to disclose that the only way that Redback was able to report record financial results was because shares of Redback stock were being given to Qwest insiders in exchange for sales contracts from Qwest. In fact, Qwest did not need or want the large quantities of product it had ordered and, in fact, had no strong obligation to purchase the products. On November 3, 2003, Redback filed for Chapter 11 Bankruptcy protection. After trading as high as $179.12 during the Class Period, Redback's shares were then worthless.

As summarized by the Company’s FORM 10-Q for the Quarterly Period Ended September 30, 2006, on December 15, 2003, the first of several putative class action Complaints, Robert W. Baker, Jr., et al. v. Joel M. Arnold, et al., No. C-03-5642 JF, was filed in the United States District Court for the Northern District of California. At least ten nearly identical Complaints were filed in the same court. All of the Complaints eventually were consolidated into a single consolidated Complaint. Plaintiffs have amended the consolidated Complaint several times. Two of Plaintiffs’ amendments of the consolidated Complaint came in response to orders by the Court granting Defendants’ motions to dismiss earlier versions of the consolidated Complaint and allowing Plaintiffs leave to amend. The current version of the consolidated Complaint is the Fourth Amended Consolidated Complaint, which was filed on May 19, 2006. The Fourth Amended Consolidated Complaint names 12 of Redback's current and former officers and directors as Defendants. The Company is not named as a Defendant. The Complaint asserts claims on behalf of all purchasers of our shares of common stock from November 27, 1999 through October 10, 2003. The Complaint purports to allege violations of the federal securities laws in connection with the alleged failure to timely disclose information primarily relating to certain alleged transactions between Redback and Qwest Communications International, Inc. The Complaint seeks damages in an unspecified amount. On July 10, 2006, the Defendants filed a motion to dismiss the Fourth Amended Consolidated Complaint. The Court heard arguments on the motion to dismiss on September 15, 2006. The Court has not yet issued a ruling on the motion to dismiss.

On March 30, 2007, the Honorable Judge Jeremy Fogel ruled in response to briefings and oral arguments from the parties involved. He granted PricewaterhouseCooper's motion to dismiss the Fourth Amended Consolidated Complaint without leave to amend (PricewaterhouseCooper operated as Redback's outside auditor), and granted Redback's motion to dismiss the Fourth Amended Consolidated Complaint with leave to amend. Judge Fogel noted that the Plaintiffs have sixty (60) days to file an amended class action Complaint, but that "in light of the numerous opportunities Plaintiffs have been afforded to plead a viable claim, further leave to amend the allegations regarding loss causation and other aspects of the claims addressed in this order will not be granted."

Plaintiffs filed a Fifth Amended Consolidated Complaint on June 1, 2007.

According to an article dated December 6, 2007, in an order handed down on Wednesday, a judge in the U.S. District Court for the Northern District of California granted a motion to dismiss the amended Complaint in a suit against Redback. The court did not allow the Plaintiffs leave to amend. The case was originally brought by a class of shareholders who purchased Redback stock from November 1999 to October 2003. The suit alleged that “Redback in essence bought revenues from Qwest Communications International Inc., and others through bribery and quid pro quo arrangements,” according to court documents.

On January 3, 2008, the Plaintiff filed a Notice of Appeal as to the December 4, 2007 Judgment. The appeal is currently pending in the U.S. Court of Appeals for the Ninth Circuit.