Riverstone hit with class action lawsuit

By Susan Rush
from CED Broadband Direct, July 26, 2002

Metro networker Riverstone Networks is the subject of a class action lawsuit filed in a California court yesterday.

The suit, filed in the U.S. District Court for the Northern District of California, alleges Riverstone issued a series of false and misleading statements concerning the company's financial condition and sales. Specifically, Riverstone Networks did not disclose the "true effect" that the downturn in telecom spending had on the company, according to the lawsuit.

Law firm Stull, Stull & Brody have filed the class action suit on behalf of those who purchased Riverstone securities between Aug. 20, 2001 and June 5, 2002. The suit seeks to recover unspecified damages.

Riverstone Networks could not be reached for comment before deadline.

Stull, Stull & Brody also has filed class-action suits against several companies, including EarthLink Inc., Salomon Smith Barney, Inc. and its star telecommunication research analyst, Jack Grubman, in relation to the WorldCom scandal.