SOURCE: Law Offices of Marc S. Henzel

July 14, 2005 09:25 ET

Law Offices of Marc S. Henzel Announces Class Action Lawsuit Against Carrier Access Corporation

BALA CYNWYD, PA -- (MARKET WIRE) -- July 14, 2005 -- A class action lawsuit was filed in the United States District Court for the District of Colorado on behalf of purchasers of Carrier Access Corporation (NASDAQ: CACSE) publicly traded securities during the period between October 21, 2003 and May 20, 2005 (the "Class Period").

The complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding the Company's financial results and its business prospects. As a result of these false statements, the Company's shares traded at inflated levels during the Class Period, allowing the defendants to use the Company's shares as currency in its acquisition of Paragon Networks and to sell 6 million shares to the public in a secondary offering, raising proceeds of $78 million.

However, according to the complaint, by July 20, 2004, due to the defendants' concerns about the government's stance towards accounting fraud, the Company announced a reduction in the Company's projections, sending its shares down 37%, a loss of $4.73 to $8.06. On May 5, 2005, the Company issued a press release in which it announced it had received a Nasdaq Staff Determination letter which indicated that, "Although the company filed its Form 10-K for the fiscal year ended December 31, 2004, the filing did not include management's assessment of its internal controls over financial reporting and the associated auditor attestation report." As a result, the Company's stock was subject to delisting on the Nasdaq Stock Market. Then on May 20, 2005, the Company issued a press release stating that it was in the process of performing a detailed review of all significant customer relationships and as part of those reviews was evaluating the propriety of the timing of revenue and cost recognition and other revenue recognition issues. The release stated: "At this point in time, the Company has determined that certain revenues and direct costs have been recorded in incorrect periods. The amounts that have been quantified to date are significant and, as a result, previously issued financial statements for the year ended December 31, 2004, and certain interim periods in each of the years ended December 31, 2004, and 2003, will be restated." On this news the Company's stock fell to $4.60 per share.

If you are a member of the class described above, you may, not later than August 2, 2005, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

If you have any questions concerning this case or your rights or interests with respect to these and other matters in this notice, please contact: Marc S. Henzel, Esq. of The Law Offices of Marc S. Henzel, 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by telephone (888) 643-6735 or (610) 660-8000, by facsimile (610) 660-8080, by e-mail at or visit the firm's website at

Contact Information