According to a press release dated March 12, 2008, Ikanos Communications, Inc.(NASDAQ:IKAN), a leading developer and provider of Fiber Fast(TM) broadband solutions, announced that the U.S. District Court for the Southern District of New York has dismissed the securities class action suit filed against the Company, certain of its directors and officers and two investment banks. … Plaintiffs have thirty days from entry of judgment to appeal the decision.
On January 4, 2007 the three similar complaints were ordered consolidated. Then on February 16, 2007 the Panther Partners, Inc. were ordered lead plaintiffs and their selection of lead counsel was approved. An amended class action complaint was filed April 24, 2007 re-alleging the misrepresentations made by Ikanos in connection with their IPO and Secondary Offering. Defendants moved to dismiss the complaint in separate motions on July 10 and 11 of 2007.
According to a press release dated November 7, 2006, the complaint charges Ikanos and certain of its officers, directors and underwriters with violations of the Securities Act of 1933. Ikanos engages in the development and provision of programmable semiconductors that enable fiber-fast broadband services over telephone companies' existing copper lines. The Company offers very-high-bit-rate digital subscriber lines that are designed to address different segments of the broadband semiconductor market for carrier networks and subscriber premises equipment.
The Complaint alleges that the Registration Statements and Prospectuses issued in connection with the IPO and Secondary Offering were negligently prepared and, as a result, contained untrue statements of material facts; omitted to state other facts necessary to make the statements made therein not misleading; and were not prepared in accordance with the rules and regulations governing their preparation. Specifically, the Complaint alleges, among other things, that the Registration Statements and Prospectuses included representations that the Company's business had grown due to successful deployments in Japan. In fact, according to the Complaint, the deployments in Japan had grown because Ikanos had shipped excessive product to Japanese customers in excess of those customers' needs and the Registration Statements and Prospectuses failed to disclose that the Company's future results would be adversely affected by this practice.
The complaint further alleges that on October 4, 2006, Ikanos issued a press release announcing preliminary third quarter revenue results and stated that the revenue expectations were $4-6 million lower than expected, and the fourth quarter revenue results would be adversely affected due to, among other things, "carriers in Japan () currently working through their existing equipment levels." On this news, the stock collapsed to as low as $7.23 per share, before closing at $7.76 per share on volume of 9.5 million shares traded.
On July 8, 2008, a notice of appeal was filed by the plaintiffs the United States Court of Appeals for the Second Circuit.
An appellate order was entered on October 20, 2008, in accordance with 11 U.S.C. Section 362 of the United States Bankruptcy Code. Subsequently, the appeal was stayed.
On November 14, 2008, an appellate order was entered on the motion by Appellant granting voluntary dismissal of appeal as to Lehman Brothers, and motion to vacate stay and to amend the briefing schedule.
On October 09, 2009, the US Court of Appeals affirmed the district court’s judgment on the dismissal of the plaintiff’s amended complaint, vacated the denial of motion to reconsider, and remanded the case back to the district court.
On June 19, 2012, a Third Amended Complaint was filed by the lead plaintiffs against the defendants.
On May 25, 2012, the Second Circuit Court of Appeals ordered that the judgment of the district court be vacated, and the case remanded.
On February 28, 2013, a settlement agreement was filed by Panther Partners.