Riverstone charged with securities fraud

By Susan Rush
from CED Broadband Direct, July 30, 2002

Less than a week after a class action lawsuit was filed against metro networker Riverstone Networks Inc., the company is being sued again.

The class action lawsuit claims the company and certain senior officers deceived investors by falsely representing Riverstone's financial condition and prospects in public statements. Weiss & Yourman filed the suit in the U.S. District Court for the Northern District of California on behalf of purchasers of Riverstone securities between Aug. 20, 2001 and June 5, 2002. The suit seeks unspecified damages.

Riverstone Networks could not be reached for comment before deadline.

Last week, the law firm of Stull, Stull & Brody filed a class action suit on behalf of those who purchased Riverstone securities between Aug. 20, 2001 and June 5, 2002. The suit, which alleges Riverstone issued a series of false and misleading statements concerning the company's financial condition and sales, seeks to recover unspecified damages.