homeimgo

Home

About Our Firm

Our Areas of Practice

Our Attorneys

Recently Filed Actions

Join a Class Action

Report Fraud

Significant Recoveries

Notices & Proof of Claims

Contact Us

KAPLAN FOX & KILSHEIMER LLP SEEKS TO RECOVERY LOSSES FOR INVESTORS WHO PURCHASED
CROSSROADS SYSTEMS, INC. COMMON STOCK.

NEW YORK – September 8, 2000 – The following statement was issued today by the law firm of Kaplan Fox & Kilsheimer LLP:

Crossroads Systems, Inc. (“Crossroads” or the “Company”) (Nasdaq: CRDS) and certain of its officers were named as defendants in a securities class action filed today in the United States District Court for the Western District of Texas.  The action seeks damages for violations of the federal securities laws on behalf of investors who purchased Crossroads common stock between January 25, 2000 and July 26, 2000, inclusive (the “Class Period”).

The complaint alleges that during the Class Period, defendants knew, but did not disclose to investors, that the Company was experiencing serious and recurring problems with its interoperable Fibre Channel storage routers.  In fact, although the Company announced the release of its 4x50 Fibre Channel storage routers on January 25, 2000, it was not until the summer of 2000 that Crossroads was able to ship a router with 4x50 features.  The problems with the routers got so bad that by mid-July the Company was forced to cease shipment of the routers. On July 27, 2000, the Company disclosed that its revenues would decline from the previous quarter's revenues by 66% due to the halt in the shipment of the routers and the cancellation of a large order at the end of the quarter. When the truth about the Company's business was finally revealed to investors on July 27, 2000, the price of Crossroads common stock lost more than 50% of its value in one day. The complaint alleges that as a result of Crossroads' misrepresentations and omissions, the price of Crossroads' stock was artificially inflated during the Class Period, and investors who bought the stock were damaged thereby.  The action seeks to recover for investors the amount they overpaid for their common stock during the Class Period.

Plaintiffs seek to recover damages on behalf of the Class and are represented by Kaplan Fox & Kilsheimer LLP which has many years of experience in prosecuting investor class actions and actions involving financial fraud.  For more information about Kaplan Fox & Kilsheimer LLP, please visit our website at www.KaplanFox.com. If you are a member of the Class, you may move the court no later than September 26, 2000, to serve as a lead plaintiff for the Class.  In order to serve as a lead plaintiff, you must meet certain legal requirements.

If you purchased Crossroads common stock during Class Period and suffered a loss on your investment, you may contact Kaplan Fox & Kilsheimer LLP at mail@KaplanFox.com or contact:

Frederic S. Fox, Esq.
Christine Fox, Esq.
Donnie R. Hall, Esq.
Kaplan Fox & Kilsheimer LLP
805 Third Avenue – 22nd Floor
New York, NY 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714

 | HOME | | ABOUT OUR FIRM | | OUR AREAS OF PRACTICE |

| OUR ATTORNEYS | | RECENTLY FILED ACTIONS | | CONTACT US |

For additional information about Kaplan Fox & Kilsheimer LLP

contact (mail@KaplanFox.com)

© Copyright 2001, Kaplan Fox & Kilsheimer LLP