AUSWR
The Association of U S West Retirees
 

 

 

Tellabs must face securities fraud suit
Chicago Sun Times
Friday, January 18, 2008

Tellabs Inc., the
Naperville 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 exceedingly unlikely."

Tellabs fell from $67.18 on Dec. 2, 2000, to $16.04 the following June 20 as it began scaling back projections.

http://www.suntimes.com/business/746894,CST-FIN-tick18.article