CIENA Announces Summary Judgement Granted in its Favor in Kimberlin Case
Linthicum, MD — 09/14/1998A federal district court has dismissed federal securities law claims brought against Ciena Corporation (NASDAQ: CIEN) and certain of its individual directors by investor Kevin Kimberlin and related parties, finding "no violations" of federal securities laws in the Company's or directors' conduct. Kimberlin filed the lawsuit in November 1996 in the U.S. District Court for the Southern District of New York against the company and certain directors, alleging that Kimberlin and other parties controlled by him had been fraudulently denied the opportunity to purchase shares in Ciena in connection with a private offering in December 1995.
In a decision dated September 9, 1998, but received by the Company today following its morning conference call with financial analysts, U.S. District Court Judge Sonia Sotomayor granted Ciena's motion for summary judgement as to the Kimberlin plaintiffs' federal securities claims, finding "no violations of the federal securities laws in [Ciena's and the individually-named board members'] conduct." The Court also dismissed all related state law claims without prejudice, declining to exercise jurisdiction over these claims.
Patrick Nettles, Ciena's President and Chief Executive Officer said, "We are delighted that the court has agreed with our position that there was no basis for these claims, and we are pleased that we can put this distraction behind us and move forward with our business."
Ciena specializes in network transition. We provide the flexible platforms, intelligent software and professional services to build converged networks for enhanced services and applications. With a growing global presence, Ciena leverages its heritage of practical innovation to deliver maximum performance and economic value in communications networks worldwide. For more information, visit www.ciena.com.
Forward-looking statements in this release, including statements regarding the anticipated dates to achieve different capacities on a single strand of fiber optic cable and the limited availability of the OC-192 interface in early 1999 are based on information available to the Company as of the date hereof. The Company's actual results could differ materially from those stated or implied by such forward-looking statements, due to risks and uncertainties associated with the Company's business. The forward-looking statements should be considered in the context of risk factors disclosed in the Company's Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on September 14, 1998.
Nicole Anderson
Ciena Corporation
(877) 857 -7377
pr@ciena.com
Marie Downing
Ciena Corporation
(888) 243-6223
ir@ciena.com
