A class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of purchasers of Harmonic, Inc. (NASDAQ:HLIT) securities between March 27, 2000 and June 26, 2000 (the "Class Period").
Harmonic designs, manufactures and markets digital and fiber optic systems. The systems are used to deliver video, audio and data over cable, satellite and wireless networks.
The defendants include Harmonic, Anthony J. Ley, Robin N. Dickson and Michael Yost. The Complaint charges that defendants violated §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5). The action arises from damages incurred by the Class as a result of a scheme and common course of conduct by defendants which operated as a fraud and deceit on the Class during the Class Period. Specifically, the Complaint alleges that defendants disseminated false and misleading statements concerning the revenues to be derived from Harmonic's largest customer, AT&T, and from its newly acquired C-Cube division ("DiviCom"). Defendants also stated that the revenue derived from these sources would result in earnings per share ("EPS") of $1.19 for the year 2000.

Update

On July 3, 2001, the Court issued an order dismissing plaintiffs' First Amended Complaint without prejudice. Following that order, plaintiffs filed their Second Amended Complaint. On November 13, 2002, the Court dismissed plaintiffs' Second Amended Complaint with prejudice. Plaintiffs' motion to amend that judgment, and for leave to file an amended complaint, was denied on June 6, 2003. On July 1, 2003, plaintiffs filed their notice of appeal of the Court's November 13, 2002 and June 6, 2003 orders.