By Lisa Burroughes, 23 April 2001 14:30
NEWS A class action has been filed by the Plumbers and Pipefitters Pension Fund, an institutional investor in the networking giant. It claims Cisco has violated US securities law for the period between 10 August 1999 and 6 February 6. The action claims key directors within the company struck finance deals with ISPs and local telcos needing technology but with only limited capital, as long as they agreed to buy Cisco products. Milberg Weiss, the legal firm handling the lawsuit, claims that by shipping defective or incomplete products, Cisco was able to post "record" earnings for the quarters in the period covered by the class action and falsely raise share prices. On 16 April this year, Cisco announced a $2.5bn write-down of inventory in its services business - which is one of the biggest in history. Cisco has declined to comment so far. Cisco's John Chambers features in silicon.com's Agenda Setters 2001. To find out more, visit http://www.silicon.com/as2001
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