FOX & KILSHEIMER LLP FILES SECURITIES
FRAUD CLASS ACTION AGAINST
PARADYNE NETWORK, INC.
NEW YORK – October 23, 2000- Kaplan Fox & Kilsheimer LLP
( www.KaplanFox.com) has filed a Class Action against Paradyne Networks, Inc. and certain of the Company's officers and
directors in the United States District Court, Middle District of Florida, Tampa Division. The suit is brought on behalf of all persons or entities who
purchased the common stock of Paradyne Networks ("Paradyne" or the "Company") (Nasdaq:PDYN) between September 28, 1999 and September 28,
The complaint charges Paradyne and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants issued a series of material misrepresentations to the market
during the Class Period, September 28, 1999 to September 28, 2000, thereby inflating the price of Paradyne common stock. For example, on August 14, 2000,
defendants filed a Form 10-Q, in which they did not disclose the Company's true financial condition and that the Company was facing a lack of customer demand for their
products. Shortly thereafter, on September 28, 2000, defendants shocked the market by revealing that the Company's growth and financial performance for the third
quarter would be significantly lower than previously estimated, due to "reduced shipments to a few network service provider customers." The press
release also revealed that Paradyne expects results in the fourth quarter of 2000 and calendar 2001 to be impacted by these changes. As a result, Paradyne's
stock plummeted 42%.
Plaintiff seeks to recover damages on behalf of the Class and is
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, you may visit our website at www.KaplanFox.com.If you are a member of the Class, you may move the court no later than December 5, 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 have any questions about this Notice, the action, your
rights, or your interests, please e-mail us at mail@KaplanFox.comor contact:
Frederic S. Fox, Esq.
Janine R. Azriliant, Esq.
Hae Sung Nam, Esq.
Kaplan Fox & Kilsheimer LLP
805 Third Avenue - 22nd Floor
New York, NY 10022
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com
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