Ikanos Communications, Inc. in Class Action Lawsuit Loom

A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors of Ikanos Communications, Inc. who purchased the common stock of Ikanos pursuant and/or traceable to the Company’s Registration Statement and Prospectus for its initial public offering on September 22, 2005, or its secondary public offering on March 8, 2006, charges Ikanos and certain of its officers, directors and underwriters with violations of the Securities Act of 1933, seeking to pursue remedies under the Securities Act of 1933.

The Complaint alleges that the Registration Statements and Prospectuses issued in connection with the IPO and Secondary Offering were negligently prepared and, as a result, contained untrue statements of material facts; omitted to state other facts necessary to make the statements made therein not misleading; and were not prepared in accordance with the rules and regulations governing their preparation.

Specifically, the Complaint alleges, among other things, that the Registration Statements and Prospectuses included representations that the Company’s business had grown due to successful deployments in Japan. In fact, according to the Complaint, the deployments in Japan had grown because Ikanos had shipped excessive product to Japanese customers in excess of those customers’ needs and the Registration Statements and Prospectuses failed to disclose that the Company’s future results would be adversely affected by this practice.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today.

Link [biz.yahoo.com/bw/061106/20061106006464.html?.v=1&printer=1]

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