Sponsored By

Tellium Sued for the Nth Time

Faruqi & Faruqi file yet another class action lawsuit against Tellium for misleading investors

January 2, 2003

2 Min Read

NEW YORK -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of New Jersey, on behalf of all purchasers of Tellium, Inc. (``Tellium'' or the ``Company'') (NasdaqSC:TELM - News) securities between May 17, 2001 and February 1, 2002, inclusive (the ``Class Period''). A copy of the complaint filed in this action can be viewed on the firm's website at http://www.faruqilaw.com. The complaint charges defendants with violations of federal securities laws by, among other things, issuing a materially false prospectus in connection with the Company's initial public offering (``IPO''). Moreover, Tellium issued a series of materially false and misleading press releases concerning Tellium's highly touted contract with Qwest Communications International, Inc. (``Qwest'') for the sale of switches which provided for a minimum $300 million purchase commitment. These statements were materially false and misleading because Tellium failed to disclose: (i) that Qwest neither needed nor wanted Tellium's switches but had entered into the agreement only because Tellium was giving ``friends and family'' stock to officers of Qwest; (ii) the number of switches envisioned by the agreement was much larger than Qwest would need and represented some 200 switches, which by far exceeded the number of sites Qwest had; and (iii) in fact, Qwest had no solid minimum commitments and could terminate the agreement with relative ease. On February 1, 2002, Tellium admitted its 2002 results would be far worse than expected based partly because it could not rely on the Qwest order. As a result of this revelation, the price of Tellium stock declined to $2-55/64, approximately 90% from its class period high of $29-47/64. Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Tellium securities between May 17, 2001 through February 1, 2002, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud. If you wish to obtain information concerning joining this action you can do so under the ``Join Lawsuit'' section of our website at http://www.faruqilaw.com.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like