Tellabs: We sued first!

August 30, 2001

1 Min Read

LISLE, Ill. -- Tellabs has ended its strategic alliance with RiverstoneNetworks, Inc., (NasdaqNM: RSTN) and will no longer sell Riverstoneproducts. Tellabs filed a legal complaint against Riverstone on Tuesday,Aug. 28, in Cook County, Ill., for breach of contract, fraud,misappropriation of trade secrets and deceptive trade practices. Fordetails on how Riverstone failed to meet the terms of theTellabs/Riverstone alliance agreement signed in November 2000, seeTellabs' complaint posted at www.tellabs.com/news/riverstonesuit.pdf.Today Riverstone Networks disclosed that it had filed a legal complaintagainst Tellabs, but did not disclose that its suit was a response toTellabs' suit filed on Tuesday.Riverstone products have never met contractual requirements for handlingvoice traffic, Tellabs said. Further, Riverstone missed multipleproduct development milestones and still cannot meet the voicerequirements."Our customers need a solution that can handle both data and voice overcable, and we are unable to meet customers' needs with the Riverstoneproducts," said Steve McCarthy, senior vice president of marketing atTellabs. "Going forward, we will offer our next-generation CABLESPAN®solution through interoperability with multiple brands of cable modemtermination systems (CMTSs) and routers. Tellabs is committed to workingwith customers to enable the voice-over-IP market."Tellabs Inc.

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