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Case Status:    SETTLED
On or around 02/01/2008 (Ongoing date of last review)

Filing Date: June 02, 2005

According to a press release dated March 26, 2007, Carrier Access Corporation (NASDAQ: CACS), a leading provider of wireless and converged access solutions, announced today that the Securities and Exchange Commission (SEC) has closed its formal inquiry related to the Company's restatement of financial statements for fiscal years 2003 and 2004. The SEC's notification to the Company confirmed that no enforcement action would be recommended. In addition, the Company announced that it had reached agreement in principle for settlement of its outstanding class action securities-related litigation filed in June 2005 against the Company and certain of its executive officers and directors upon the Company's announcement that it would restate financial statements. While Carrier Access continues to deny any wrongdoing, it believes the settlement is in the best interest of the Company and its shareholders to avoid the distraction and expense of continued litigation. The settlement is subject to court approval. Under the terms of the proposed settlement, Carrier Access would pay $7.4 million in satisfaction of the claims, all of which would be funded by proceeds of the Company's directors and officers insurance policy.

According to the Company’s FORM 10-Q for the quarterly period ended September 30, 2006, beginning on June 2, 2005, three purported shareholder class action lawsuits were filed in the United States District Court for the District of Colorado against Carrier Access Corporation and certain of the Company’s officers and directors. The cases, captioned Croker v. Carrier Access Corporation, et al., Case No. 05-cv-1011-LTB; Chisman v. Carrier Access Corporation, et al., Case No. 05-cv-1078-REB, and Sved v. Carrier Access Corporation, et al., Case No. 05-cv-1280-EWN, have been consolidated and are purportedly brought on behalf of those who purchased our publicly traded securities between October 21, 2003 and May 20, 2004. Plaintiffs allege that defendants made false and misleading statements, purport to assert claims for violations of the federal securities laws, and seek unspecified compensatory damages and other relief. The consolidated complaint is based upon allegations of wrongdoing in connection with the Company's announcement of its intention to restate previously issued financial statements for the year ended December 31, 2004 and certain interim periods in each of the years ended December 31, 2004 and 2003. On July 18, 2006, the Court denied defendants’ motions to dismiss the consolidated complaint. No trial date has been set for this matter.

Several purported shareholder class action lawsuits have been filed against Carrier Access Corporation and certain of its present and former executive officers with violations of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that the defendants made materially false and misleading statements during the Class Period concerning the Company's financial results and business prospects. This allowed the defendants to (i)acquire Paragon Networks using inflated Company stock, (ii) sell 6 million shares of the Company to the public in January 2004, raising $78 million,(iii) obtain listing on the Russell 3000 Index, and (iv) enable the Individual Defendants to sell nearly 1.3 million personally held shares in the Company, reaping nearly $15.8 million.

The complaint further alleges that on or around May 5, 2005, Carrier Access announced that it received a Nasdaq Staff Determination letter, indicating that the Company's stock was subject to delisting from the Nasdaq. On May 20, 2005, Carrier Access announced that it was reviewing revenue and cost recognition issues. The press release stated that "certain revenues and direct costs have been recorded in incorrect periods. The amounts that have been quantified to date are significant..." On this news, Carrier Access's share price fell to a close of $4.61 per share on May 20, 2005.

Also included in this case are all shareholders who acquired Carrier Access stock as Paragon Networks shareholders or in the January 29, 2004 Carrier Access public offering.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CACS
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: D. Colorado
DOCKET #: 05-CV-1011
JUDGE: Hon. Lewis T. Babcock
DATE FILED: 06/02/2005
CLASS PERIOD START: 10/21/2003
CLASS PERIOD END: 05/20/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  2. Dyer & Shuman, LLP
    801 E. 17th Avenue, Dyer & Shuman, LLP , CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  3. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  4. Law Offices of Brian M. Felgoise, P.C.
    Esquire at 261 Old York Road, Suite 423, Law Offices of Brian M. Felgoise, P.C., PA 19046
    215.886.1900 · securitiesfraud@comcast.net
  5. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  6. Law Offices of Marc S. Henzel (Bala Cynwyd)
    273 Montgomery Ave. Suite 202, Law Offices of Marc S. Henzel (Bala Cynwyd), PA 19004
    610.660.8000 610.660.8080 · securitiesfraud@comcast.net
  7. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  8. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@lerachlaw.com
  9. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  10. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  11. Smith & Smith LLP
    3070 Bristol Pike, Suite 112, Smith & Smith LLP, PA 19020
    215.638.4847 215.638.4867 ·
  12. 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: D. Colorado
DOCKET #: 05-CV-1011
JUDGE: Hon. Lewis T. Babcock
DATE FILED: 01/17/2006
CLASS PERIOD START: 10/21/2003
CLASS PERIOD END: 05/20/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Shuman, LLP
    801 E. 17th Avenue, Dyer & Shuman, LLP , CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@lerachlaw.com
  3. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Seattle)
    1700 Seventh Avenue, Suite 2260 , Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Seattle), WA 98101
    206-749-5544 206.749-9978 ·
No Document Title Filing Date
No Document Title Filing Date