Occam Networks, Inc. (OCNW) Breach of Fiduciary Duty Claims Investigation
Occam Networks, Inc. is a Delaware corporation headquartered in Santa Barbara, California which develops, markets and supports broadband access products. Its stock is listed on NASDAQ.
On October 16, 2007 the Company announced it was restating three years of financial statements due to improper revenue recognition. It admitted that of approximately $120,000,000 in sales, over $30,000,000 had been improperly recognized, in violation of Generally Accepted Accounting Principles. The stock immediately dropped on high volume.
The Company, several of its officers and directors, its certified public accountants and several venture capital firms have been sued for violation of the Federal Securities Laws, and a federal judge in Los Angeles has denied motions to dismiss many of these claims.
We are investigating whether the same alleged conduct may constitute breaches of fiduciary duty by the Company’s officers and directors, in anticipation of a possible lawsuit on behalf of the Company to recover the damages the Company suffered by their improper actions. This is called a shareholder derivative suit. If you are a current Occam shareholder you may be able to pursue such a derivative claim on the corporation’s behalf. If successful, a derivative claim could potentially result in a cash payment to the Company, correction of the Company’s improper procedures, and payment to the derivative plaintiff of an incentive award to compensate the plaintiff for his or her efforts, subject to court approval.