Harris Stratex Networks Inc. Case 09/15/2008
JULY 2011 - $8,900,000 proposed class action settlement for all persons who acquired Harris Stratex Networks (NASDAQ: HSTX) common stock between January 29, 2007 and July 30, 2008.
SEPTEMBER 2008 - On Monday, September 15, 2008 a shareholder has filed a lawsuit in the United States District Court for the District of Delaware, on behalf of all purchasers of the securities of Harris Stratex Networks, Inc. (NASDAQ: HSTX) between January 29, 2007 and July 30, 2008 against Against Harris Stratex Networks, Inc. and certain officers and directors over alleged materially false and misleading statements about its financial condition prior to and following its merger between Stratex Networks, Inc. and the Harris Microwave Communications Division.
According to a law firm press release, his action seeks to pursue remedies under the Securities Act of 1933 and the Securities Exchange Act of 1934. Specifically, the complaint alleges that Defendants issued materially false and misleading statements about its financial condition prior to and following its formation in early 2007 through the date of the merger of Stratex Networks, Inc. and the Harris Microwave Communications Division. On July 30, 2008, the Company announced that it had discovered accounting errors which rendered its previously issued financial statements to be incorrect. According to the announcement, the Company will restate earnings reports from 2005 through the present. The Company reported these accounting errors will cut previously reported pre-tax income by $18 million to $25 million. As a result of the restatement, the Company announced that its prior financial statements for the first three quarters of fiscal 2008 and the fiscal years 2005 through 2007 should no longer be relied upon. Harris Stratex’s share price fell in reaction to the announcement, falling from $11.24 to $7.35 per share — a 34.61% decline in value.