June 29, 2004

Moving Slow

In securities litigation, the wheels of justice can move slow. The Associated Press has an article on the securities class action against Cabletron Systems, Inc. in the D. of N.H. The complaint was originally filed in 1997 and alleges that Cabletron artificially inflated its stock price by overstating sales and failing to disclose problems with its products.

In a remarkable series of events, the case was dismissed in 1998 with leave to amend, reassigned several times after the original judge passed away, dismissed again in 2001, reinstated by the 1st Circuit in 2002 (in a well-known opinion), and has since been bogged down in discovery and procedural disagreements. In the interim, Cabletron has gone out of business.

Quote of note: "The two sides are currently waiting for a judge to settle procedural disagreements. Cabletronís lawyers want to know the identity of the shareholdersí anonymous sources. . . . The shareholders want permission to question under oath several of Cabletronís top executives, a group that hasnít been identified but is expected to include [Craig] Benson [a former Cabletron officer and the current governor of New Hampshire]."

Posted by Lyle Roberts at June 29, 2004 7:24 PM | TrackBack
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