ASCEND COMM CLASS ACTION LITIGATION


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Keywords & Phrases

CaseNo: ACCAL176914, CourtName: CLASS ACTION CASES, State: CA California, UniqueCaseRef: LCD>ACCAL176914, Ascend, Entry, Misleading Statements, Kbps Modem, Stock, Ejabat, Allege, Dfts, Ascend Communications, Securities, Class Period, Individual Defendants, Technology, Motion, Judge Mariana, Complaint, Pfaelzer, Shares, Mot, Liability, Acts, Ascend Communication, Allegations, Analysts, Class Certification, Basis, Sales, Price, Rebecca Jakubowitz, Facts, Support, Market, Digital Modems, Registration Statement, Mory Ejabat, District Courts, Misleading, Lead Pltfs, Materially False, Dism , ContentID: 120249461

Case Documents

COMPLAINT
[ see first page and extracted highlights below ] ItemID: 121588

47 pages
TXT

1999-05-24

DOCKET
[ see first page and extracted highlights below ] ItemID: 121589

21 pages
TXT

1999-02-02

MEMORANDUM
[ see first page and extracted highlights below ] ItemID: 121590

22 pages
TXT

Total Documents: 3 documents , 90 pages

Price: $ 29.95

IVESLCD01 KGI0001

1 . COMPLAINT

EXTRACTED KEY WORDS

DEFENDANTS
EJABAT
PLAINTIFFS
ASCEND COMMUNICATIONS
STOCK
CLASS PERIOD
SHARES
TECHNOLOGY
ANALYSTS
SALES
PRICE
MARKET
DIGITAL MODEMS
BUSINESS
MORY EJABAT
MISLEADING
SECURITIES
MATERIALLY FALSE
INDIVIDUAL DEFENDANTS
INTERNET SERVICE PROVIDERS
NETWORKING
ASCEND COMMON STOCK
INSIDER TRADING PROCEEDS
REGISTRATION STATEMENT
JEANETTE SYMONS
CURTIS SANFORD
REPRESENTATIONS
CLASS ACTION
EXCHANGE ACT

   Kevin J. Yourman (147159)
   James E. Tullman (175008)
   Donald S. Urrabazo (189509)
   WEISS & YOURMAN
   10940 Wilshire Blvd., 24th Floor
   Los Angeles, CA 90024
   (310) 208-2800

   Joseph H. Weiss
   Mark D. Smilow
   WEISS & YOURMAN
   551 Fifth Avenue, Suite 1600
   New York, NY 10176
   (212) 682-3025

   Edward P. Dietrich (176118)
   STULL, STULL & BRODY
   10940 Wilshire Blvd., Suite 2300
   Los Angeles, CA 90024
   (310) 209-2468

   Jules Brody
   Aaron Brody
   Tzivia Brody
   Eduard Korsinsky
   STULL, STULL & BRODY
   East 45th Street
   New York, New York 10017
   (212) 687-7230

   Attorneys for Plaintiffs

                        UNITED STATES DISTRICT COURT

                       CENTRAL DISTRICT OF CALIFORNIA


   REBECCA JAKUBOWITZ, MISHEL S.
   TEHRANI, AARON SCHLUSSER and
   JACOB TYBERG On Behalf of
   Themselves and All Others Similarly
   Situated,
                         Plaintiffs,
   vs.

   ASCEND COMMUNICATIONS, INC.,
   MORY EJABAT, BETSY S. ATKINS,
   ROBERT K. DAHL, ROGER L.

SNIPPETS:

Attorneys for Plaintiffs

This action is brought as a class action on behalf of all persons or entities who purchased

Inc. common stock between November 5,1996 and September 30, l997and who sustained damages

On behalf of themselves and the members of the Class, all plaintiffs seek to recover damages

This action arises out of defendants' fraudulent scheme and common course of conduct to

To support the critical introduction of its new product defendants disseminated materially

the defendants amassed approximately forty million dollars from their sales of the Company's

As part of the scheme to ensure that Ascend remained favored by and a darling of the

Defendants also realized that, in order to maintain Ascend's high stock price, it was

The facade that defendants created began to crumble shortly after Ascend's merger with

Analyst Christine Chien, a technology analyst at Zurich Kemper Investment Inc., which held

Plaintiff Rebecca Jakubowitz purchased 7,500 shares of Ascend common stock on September 9,

Ejabat signed the registration statement complained of herein.

During the Class Period, defendant Atkins sold 30,000 shares of Ascend stock garnering

Defendant Curtis Sanford is Senior Vice President of International Sales, General Manager of

Defendant Jeanette Symons is Executive Vice President of Advanced Products and technology

In addition, the Individual Defendants had the power and influence, and exercised such power

"This new technology Internet Service Providers or corporate/business network operations to

2 . DOCKET

EXTRACTED KEY WORDS

PLAINTIFF
DEFENDANT
DFTS
MOTION
JUDGE MARIANA
PFAELZER
MOT
ACTS
ASCEND COMMUNICATION
CLASS CERTIFICATION
REBECCA JAKUBOWITZ
SUPPORT
LEAD PLTFS
DISM
A/C
DECLARATION
EXPARTE MOTION
TRANSFER VENUE
OPPOSITION
NORTHERN DISTR
NLT
RENEWED MOTION
COMPLAINT
JURY DEMAND
DISMISS CONSOLD
CONSOLIDATE
STIPULATION
DISM PLFS
MOTION HEARING SET

Docket as of May 24, 1999 (retrieved 5/25/99)

Proceedings include all events.                                          LEADTR
2:97cv8861 Rebecca Jakubowitz, et al v. Ascend Communication, et al      (ANx)

                                                            LEADTR (ANx)
                       U.S. District Court
          Central District of California (Western Div.)

               CIVIL DOCKET FOR CASE #: 97-CV-8861

Rebecca Jakubowitz, et al v. Ascend Communication, et al    Filed: 12/02/97
Assigned to: Judge Mariana R. Pfaelzer       Jury demand: Defendant
             Referred to: Discovery Arthur Nakazato
Demand: $0,000                               Nature of Suit:  850
Lead Docket: None                            Jurisdiction: Federal Question
Dkt# in other court: None

Cause: 15:78m(a) Securities Exchange Act


REBECCA JAKUBOWITZ                Edward Philip Dietrich
     plaintiff                    (COR LD NTC)
                                  Milberg Weiss Bershad Hynes &
                                  Lerach
                                  1800 One American Plaza
                                  600 West Broadway
                                  Suite 1800
                                  San Diego, CA 92101-3356
                                  619-231-1058

                                  Jules Brody
                                  (COR LD NTC)
                                  Aaron Brody
                                  (COR LD NTC)
                                  Tzivia Brody
                                  (COR LD NTC)
                                  Stull Stull & Brody
                                  6 East 45th St
                                  4th Floor
                                  New York, NY 10017
                                  212-687-7230

                                  Joseph H Weiss
                                  FAX 212-682-3010
                                  (COR LD NTC)
                                  Mark D Smilow
                                  (COR LD NTC)

SNIPPETS:

2:97cv8861 Rebecca Jakubowitz, et al v. Ascend Communication, et al

Rebecca Jakubowitz, et al v. Ascend Communication, et al Filed: 12/02/97 Assigned to: Judge

12/2/97 1 COMPLAINT filed Summonsissued referred to Discovery

Jury Demand (Entry date 12/04/97)

12/30/97 2 NOTICE by plaintiff of related caseCV97-9069 TJH,

1/14/98 3 NOTICE by defendant of related case97CV2235 H

1/14/98 4 PROOF OF SERVICE of Not of pendency of other acts by mail

et al on 1/14/98 by dfts Ascend

mot to dism the amd and consol cmp.

1/30/98 7 NOTICE OF MOTION AND MOTION by plaintiffs and memo of Law

in support of mot for appointment of lead pltfs and lead

and to consolidate all related

1/30/98 8 DECLARATION of Kevin J Yourman by plaintiffs in support re

2/9/98 14 NOTICE OF MOTION AND MOTION by defendant to transfer venue

motion hearing set for 10:00 3/2/98

2/12/98 20 STIPULATION and ORDER by Hon Wm Matthew Byrne,

for exparte motion for 30 day postponement of hearing on

2/17/98 25 Memo of P/A's in OPPOSITION by dfts Ascend Communication,

3/6/98 41 NOTICE OF MOTION by plaintiff for class certification

for order cont date for fi mot to dism plfs' consol 1st A/C

7/13/98 67 NOTICE OF RENEWED MOTION AND MOTION by plaintiff Rebecca

dism consol 2nd A/C NLT 10/5/98;

Jeanette Symons to dismiss consold 2nd A/C purs

3 . MEMORANDUM

EXTRACTED KEY WORDS

DEFENDANTS
ASCEND
MISLEADING STATEMENTS
KBPS MODEM
ALLEGE
SECURITIES
STOCK
INDIVIDUAL DEFENDANTS
COMPLAINT
LIABILITY
ALLEGATIONS
CLASS PERIOD
BASIS
TECHNOLOGY
FACTS
DISTRICT COURTS
HEIGHTENED PLEADING
FEDERAL SECURITIES LAWS
CONFERENCE
ACCESS PRODUCTS
SECURITIES LITIGATION
ASCEND COMMUNICATIONS
REGISTRATION STATEMENT
ALLEGING VIOLATIONS
CONCLUSORY ALLEGATIONS
PLEADING REQUIREMENT
HEIGHTENED PLEADING STANDARDS
PSLRA
MATERIALITY


                        UNITED STATES DISTRICT COURT

                       CENTRAL DISTRICT OF CALIFORNIA

   IN RE ASCEND COMMUNICATIONS
   SECURITIES LITIGATION
   ____________________________________

   )
   )
   )
   )
   )

   CASE No. CV 97-8861 NW

   MEMORANDUM OF DECISION
   (filed Feb. 2, 1999)

                                 Background

   This class action was brought against Ascend Communications, Inc.
   ("Ascend") and thirteen individual defendants who are officers and/or
   directors of Ascend, on behalf of all persons or entities who acquired
   Ascend stock during the class period of November 5, 1996 to September
   30, 1997 ("class period"). Ascend develops, manufactures, sells and
   supports a broad range of high-speed digital wide area network access
   products designed to extend existing corporate networks to support
   applications such as video conferencing and Internet access.
   Plaintiffs allege that defendants violated the federal securities laws
   by making false and misleading statements informing the investing
   public that Ascend would be the first remote-access vendor to deliver
   a 56 Kbps modem and that Ascend's products incorporating the new
   technology would be operable and available in January 1997. According
   to the plaintiffs' allegations, the defendants knew or recklessly
   disregarded serious problems with the 56 Kbps modem product when they
   made those statements. The alleged motive for this deception was to
   profit through insider trading and by completing a merger with Cascade
   Communications, Inc. ("Cascade") using artificially inflated stock. At
   the close of the class period, analysts and the investing public
   learned of the problems the new modems were experiencing and the
   corresponding decrease in sales of Ascend's products. On September 30,
   1997, the last day of the class period, the defendants warned the
   public that earnings would be one-third of what had been previously
   represented. Ascend stock dropped to $33 per share from the class
   period high of $80-1/4.

SNIPPETS:

This class action was brought against Ascend Communications, Inc. and thirteen individual

Ascend develops, manufactures, sells and supports a broad range of high-speed digital wide

Plaintiffs allege that defendants violated the federal securities laws by making false and

According to the plaintiffs' allegations, the defendants knew or recklessly disregarded

The class is alleging violations of § 10of the Securities Exchange Act of 1934 by all

The defendants have now moved to dismiss the Second Amended Complaint primarily on the

Rule 9requires that the plaintiffs plead the basis for their fraud claims with particularity

Therefore, it is appropriate to apply Rule 9's heightened pleading requirement to the §§ 11,

The essence of the plaintiffs' §§ 11 and 12claims is that the defendants intentionally

Failure to meet these heightened pleading standards mandates dismissal of the complaint.

Therefore, for each forward-looking statement, a complaint must now allege facts suggesting

There is no governing Ninth Circuit law interpreting these PSLRA requirements, although a

It is not sufficient to make conclusory allegations of each element required by the pleading

As discussed below, the scienter allegations are merely conclusory, and the plaintiffs cannot

On July 15, 1997, Ejabat is reported to have said in a conference call with investors and


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