NEW YORK, Feb. 8, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Tellabs, Inc. ("Tellabs" or the "Company") (Nasdaq:TLAB) and certain of its officers. The class action filed in United States District Court, Northern District of Illinois, and docketed under 13-cv-1066, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Tellabs between October 26, 2010 and April 26, 2011, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Tellabs securities during the Class Period, you have until March 25, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Tellabs designs, develops and supports telecommunications networking products for communication service providers in the United States and internationally.
The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company's Q4 2010 revenue guidance factored in a change to the distribution arrangement with a certain customer which would accelerate revenue recognition on substantial sales to Q4 2010 that otherwise would not have been recognized until Q1 2011; (2) that, as such, this out of the ordinary shift in revenue recognition from Q1 2011 masked that the Company's business and revenues were declining substantially faster in Q4 2010 than the Company had represented to the public; (3) that the Company's North American business was slowing at a greater rate than the Company had represented to the public; and (4) that, as a result of the above, the defendants' positive statements about the Company's business, operations and prospects lacked a reasonable basis and/or were materially false and/or misleading when made.
On January 25, 2011, the Company issued a press release announcing its Q4 2010 financial results wherein the Company admitted that when it "set the guidance and provided it to [the public] in October [of 2010] ... [Tellabs had] anticipate[d] the change in this distribution arrangement with the customer."1 On this news, shares of Tellabs declined $1.35 per share, or almost 20%, to close on January 25, 2011, at $5.69 per share, on unusually heavy volume.
The Pomerantz Firm, with offices in New York, Chicago, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
1Unless noted otherwise, all emphasis is added.
CONTACT: Robert S. Willoughby Pomerantz Grossman Hufford Dahlstrom & Gross LLP firstname.lastname@example.org