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