A class action has been filed against Carrier Access Corporation (NasdaqNM:CACSE) formerly (NasdaqNM:CACS), certain of its officers and directors by stockholders who purchased the company's common stock between October 21, 2003 and May 20, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

Several purported shareholder class action lawsuits have been filed against Carrier Access Corporation and certain of its present and former executive officers with violations of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that the defendants made materially false and misleading statements during the Class Period concerning the Company's financial results and business prospects. This allowed the defendants to (i)acquire Paragon Networks using inflated Company stock, (ii) sell 6 million shares of the Company to the public in January 2004, raising $78 million,(iii) obtain listing on the Russell 3000 Index, and (iv) enable the Individual Defendants to sell nearly 1.3 million personally held shares in the Company, reaping nearly $15.8 million.

The complaint further alleges that on or around May 5, 2005, Carrier Access announced that it received a Nasdaq Staff Determination letter, indicating that the Company's stock was subject to delisting from the Nasdaq. On May 20, 2005, Carrier Access announced that it was reviewing revenue and cost recognition issues. The press release stated that "certain revenues and direct costs have been recorded in incorrect periods. The amounts that have been quantified to date are significant..." On this news, Carrier Access's share price fell to a close of $4.61 per share on May 20, 2005.

Also included in this case are all shareholders who acquired Carrier Access stock as Paragon Networks shareholders or in the January 29, 2004 Carrier Access public offering.

If you bought Carrier Access Corporation securities between October 21, 2003 and May 20, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.