Copper Mountain Faces Fraud Complaint

Class-action suit filed on behalf of purchasers of Copper Mountain Networks common stock

November 1, 2000

1 Min Read

LITTLE ROCK, Ark. -- The law firm of Cauley & Geller, LLP announced today that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired the common stock of Copper Mountain Networks, Inc. (Nasdaq: CMTN) ("Copper Mountain" or the "Company") between April 19, 2000 and October 17, 2000, inclusive (the "Class Period").

The complaint charges that Copper Mountain and certain of its officers and directors violated federal securities laws by disseminating false and misleading statements concerning Copper Mountain's business with Lucent Technologies, Inc. ("Lucent") and its prospects for FY 2000 and beyond. Copper Mountain's relationship with one of its largest customers, Lucent, was faltering and because the "appearance" of future growth was so critical to defendants' plan to inflate the price of Copper Mountain shares, defendants continued to maintain throughout the Class Period that Copper Mountain would post FY 2000 revenue and EPS of at least $325 million and $1.00, respectively, when, in reality, defendants knew that Copper Mountain could not possibly achieve such performance.

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