Tellabs must face securities fraud suit
Friday, January 18, 2008
Tellabs Inc., the
telecommunications equipment maker, must face a securities fraud
suit claiming the company and a former chief executive made
misleading statements about its financial prospects.
The case previously reached the Supreme Court, which ordered a
lower court to reconsider whether the plaintiff investors had
shown ex-CEO Richard Notebaert knew the statements were overly
optimistic when he made them. "It is conceivable," wrote
Circuit Judge Richard Posner in a decision Thursday, that
Notebaert was unaware of problems at the company and was
repeating misstatements fed to him by others, "but it is
Tellabs fell from $67.18 on Dec. 2, 2000, to $16.04 the
following June 20 as it began scaling back projections.