A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Foundry Networks, Inc. ("Foundry") (Nasdaq: FDRY) common stock during the period between October 18, 2000 and December 19, 2000, inclusive (the "Class Period").
The complaint alleges that Foundry and certain of its officers and directors violated federal securities laws by making positive public statements concerning Foundry while they concealed from the public that Foundry's customers were having problems raising money and that such problems were negatively impacting Foundry. The complaint further alleges that the defendants made their misrepresentations about Foundry in order to sell $113 million worth of their own Foundry shares at prices as high as $89 per share, or 580% higher than the price to which Foundry shares dropped at the end of the Class Period.
On December 19, 2000, Foundry shocked the market when it announced that it would post a decline in revenue and EPS from the prior quarter. After this announcement, Foundry's stock declined to less than $12-1/8 per share before closing at $13 per share on December 20, 2000.
Plaintiff seeks to recover damages on behalf of all those who purchased Foundry Networks common stock during the Class Period, excluding defendants and their affiliates.