| Company: | Tellabs Inc, |
| Ticker Symbol: | TLAB |
| Class Period: | Oct-26-10 to Apr-26-11 |
| Date Filed: | Jan-25-13 |
| Lead Plaintiff Deadline: | Mar-26-13 |
| Court: | Northern District of Illinois |
| Allegations: | |
The Complaint charges Tellabs and certain of the Company's executive officers with violations of federal securities laws. Tellabs designs, develops and supports telecommunications networking products. The Complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Tellabs' business, operations and prospects. Specifically, the Complaint alleges that the defendants failed to disclose, among others: (1) that in the fourth quarter of 2010, the Company was changing its distribution arrangement with a customer; (2) that this change to the distribution arrangement masked that Tellabs' business was declining substantially faster 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.
On January 25, 2011 Tellabs announced its financial results for the fourth quarter of 2010. While the Company's revenue of $410.5 million was purportedly in line with the low end of its previously issued revenue guidance, Tellabs disclosed that its quarterly revenue had substantially benefitted from a change to its distribution agreement with a customer. On this news, shares of Tellabs declined $1.35 per share, almost 20%, to close on January 25, 2011 at $5.69 per share, on unusually heavy volume.
Thereafter, on April 26, 2011, the Company announced its financial results for the first quarter of 2011, which further reflected substantial weakness in its North American business. On this news, shares of Tellabs further declined $0.49 per share, almost 10%, to close on April 26, 2011 at $4.90 per share, on unusually heavy volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
