SOURCE: Carrier Access

March 26, 2007 18:02 ET

Carrier Access Corporation Announces Closure of SEC Inquiry and Pending Settlement of Class Action Litigation

BOULDER, CO -- (MARKET WIRE) -- March 26, 2007 -- Carrier Access Corporation (NASDAQ: CACS), a leading provider of wireless and converged access solutions, announced today that the Securities and Exchange Commission (SEC) has closed its formal inquiry related to the Company's restatement of financial statements for fiscal years 2003 and 2004. The SEC's notification to the Company confirmed that no enforcement action would be recommended.

In addition, the Company announced that it had reached agreement in principle for settlement of its outstanding class action securities-related litigation filed in June 2005 against the Company and certain of its executive officers and directors upon the Company's announcement that it would restate financial statements. While Carrier Access continues to deny any wrongdoing, it believes the settlement is in the best interest of the Company and its shareholders to avoid the distraction and expense of continued litigation. The settlement is subject to court approval.

Under the terms of the proposed settlement, Carrier Access would pay $7.4 million in satisfaction of the claims, all of which would be funded by proceeds of the Company's directors and officers insurance policy.

The $7.4 million insurance recovery has been reported in prepaid expenses and other current assets, and the $7.4 million settlement liability is reported in accrued expenses and other current liabilities, in the Company's Form 10-K for the year ending December 31, 2006, filed March 16, 2007.

"We are pleased with the closure of the SEC investigation and the settlement of the class action securities-related litigation," said Gary Gatchell, chief financial officer of Carrier Access. "We are focusing our resources on execution of our business strategies as we continue to improve our corporate governance."

About Carrier Access Corporation

Carrier Access (NASDAQ: CACS) provides consolidated access technology designed to streamline the communications network operations of wireless and wireline carriers, cable operators, enterprises and government agencies. Carrier Access products enable customers to consolidate and upgrade access capacity and implement converged IP services, while lowering costs and accelerating service revenue. Carrier Access' technologies help our customers do more with less. For more information, visit or call 303-218-5707.

Contact Information

  • Contact:
    Audra Burke
    (303) 218-5455