Milberg Weiss Extends Class Period for Class Action Suit Filed Against Cisco Systems, Inc.



Apr 25, 2001, 01:00 ET from Milberg Weiss Bershad Hynes & Lerach LLP

    SAN DIEGO, April 25 /PRNewswire/ -- Milberg Weiss
 (http://www.milberg.com/cisco/) today announced that a class action has been
 commenced in the United States District Court for the Northern District of
 California on behalf of purchasers of Cisco Systems, Inc. ("Cisco")
 (Nasdaq:   CSCO) publicly traded securities during the period between August 10,
 1999 and April 16, 2001 (the "Class Period").
     If you wish to serve as lead plaintiff, you must move the Court no later
 than 60 days from April 20, 2001.  If you wish to discuss this action or have
 any questions concerning this notice or your rights or interests, please
 contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss
 at 800/449-4900 or via e-mail at wsl@milberg.com.  You can join this class
 action online at http://www.milberg.com/cisco/.
     The complaint charges Cisco and certain of its officers and directors with
 violations of the Securities Exchange Act of 1934.  Cisco and its subsidiaries
 are engaged in selling products for networking for the Internet.  The
 complaint alleges that by the beginning of the Class Period in 8/99, Internet
 Service Providers and competitive local telephone companies had technology to
 deploy but little capital, and Cisco used this as an opportunity to increase
 its sales by providing capital financing to such companies but making such
 financing conditional upon the purchase of large amounts of Cisco product.
 Through this alleged manipulation and the shipment of defective or incomplete
 products, as well as Cisco's failure to adequately accrue for excess and
 overvalued inventory and uncollectible finance receivables, Cisco was able to
 report "record" earnings each quarter during the Class Period.  Defendants
 thus made positive but false statements about Cisco's products, financial
 results and business during the Class Period.  As a result, Cisco's stock
 traded as high as $82.
     The inflation in Cisco's stock price was essential to its main corporate
 strategy, that of growth through acquisition, which Cisco accomplished through
 the exchange of inflated Cisco shares.  In addition, each of the defendants
 had the motive and the opportunity to perpetrate the fraudulent scheme and
 course of business described herein in order to sell $595 million worth of
 their own Cisco shares at prices as high as $80.24 per share, or 84% higher
 than the price to which Cisco shares dropped after the end of the Class
 Period, as the true state of Cisco's business and prospects began to reach the
 market.
     After completing more than 20 major acquisitions between 9/99 and 2/01, by
 issuing more than 400 million shares of Cisco stock, and selling more than
 10 million shares of their personal Cisco holdings, on 2/6/01, Cisco announced
 extremely disappointing 2ndQ F01 results, including EPS of only $0.18.  This
 disclosure shocked the market, causing Cisco's stock to decline to less than
 $30 per share before closing at $31-1/16 per share on 2/7/01, on record volume
 of more than 279 million shares, inflicting billions of dollars of damage on
 plaintiff and the Class.  Cisco later admitted that 3rdQ F01 sales would be
 less than $4.8 billion, or lower than any quarter since the 2ndQ F00.
 Defendants' misconduct has wiped out over $400 billion in market
 capitalization as Cisco stock has fallen 84% from its Class Period high of
 $82 per share as the truth about Cisco, its operations and prospects began to
 reach the market.  On 4/16/01, Cisco announced a $2.5 billion write-down of
 inventory (or 90% of its inventory as of 1/31/01) of components in its service
 business.  This was one of the largest inventory write-downs in U.S. history.
 Cisco stock has dropped to as low as $13-3/16.
     Plaintiff seeks to recover damages on behalf of all purchasers of Cisco
 publicly traded securities during the Class Period (the "Class").  The
 plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has
 expertise in prosecuting investor class actions and actions involving
 financial fraud.
 
     Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices
 in New York, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and
 Philadelphia, is active in major litigations pending in federal and state
 courts throughout the United States.  Milberg Weiss has taken a leading role
 in many important actions on behalf of defrauded investors, consumers, and
 companies, as well as victims of World War II and other human rights
 violations, and has been responsible for more than $30 billion in aggregate
 recoveries.  The Milberg Weiss website (http://www.milberg.com) has more
 information about the firm.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X35754363
 
 

SOURCE Milberg Weiss Bershad Hynes & Lerach LLP
    SAN DIEGO, April 25 /PRNewswire/ -- Milberg Weiss
 (http://www.milberg.com/cisco/) today announced that a class action has been
 commenced in the United States District Court for the Northern District of
 California on behalf of purchasers of Cisco Systems, Inc. ("Cisco")
 (Nasdaq:   CSCO) publicly traded securities during the period between August 10,
 1999 and April 16, 2001 (the "Class Period").
     If you wish to serve as lead plaintiff, you must move the Court no later
 than 60 days from April 20, 2001.  If you wish to discuss this action or have
 any questions concerning this notice or your rights or interests, please
 contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss
 at 800/449-4900 or via e-mail at wsl@milberg.com.  You can join this class
 action online at http://www.milberg.com/cisco/.
     The complaint charges Cisco and certain of its officers and directors with
 violations of the Securities Exchange Act of 1934.  Cisco and its subsidiaries
 are engaged in selling products for networking for the Internet.  The
 complaint alleges that by the beginning of the Class Period in 8/99, Internet
 Service Providers and competitive local telephone companies had technology to
 deploy but little capital, and Cisco used this as an opportunity to increase
 its sales by providing capital financing to such companies but making such
 financing conditional upon the purchase of large amounts of Cisco product.
 Through this alleged manipulation and the shipment of defective or incomplete
 products, as well as Cisco's failure to adequately accrue for excess and
 overvalued inventory and uncollectible finance receivables, Cisco was able to
 report "record" earnings each quarter during the Class Period.  Defendants
 thus made positive but false statements about Cisco's products, financial
 results and business during the Class Period.  As a result, Cisco's stock
 traded as high as $82.
     The inflation in Cisco's stock price was essential to its main corporate
 strategy, that of growth through acquisition, which Cisco accomplished through
 the exchange of inflated Cisco shares.  In addition, each of the defendants
 had the motive and the opportunity to perpetrate the fraudulent scheme and
 course of business described herein in order to sell $595 million worth of
 their own Cisco shares at prices as high as $80.24 per share, or 84% higher
 than the price to which Cisco shares dropped after the end of the Class
 Period, as the true state of Cisco's business and prospects began to reach the
 market.
     After completing more than 20 major acquisitions between 9/99 and 2/01, by
 issuing more than 400 million shares of Cisco stock, and selling more than
 10 million shares of their personal Cisco holdings, on 2/6/01, Cisco announced
 extremely disappointing 2ndQ F01 results, including EPS of only $0.18.  This
 disclosure shocked the market, causing Cisco's stock to decline to less than
 $30 per share before closing at $31-1/16 per share on 2/7/01, on record volume
 of more than 279 million shares, inflicting billions of dollars of damage on
 plaintiff and the Class.  Cisco later admitted that 3rdQ F01 sales would be
 less than $4.8 billion, or lower than any quarter since the 2ndQ F00.
 Defendants' misconduct has wiped out over $400 billion in market
 capitalization as Cisco stock has fallen 84% from its Class Period high of
 $82 per share as the truth about Cisco, its operations and prospects began to
 reach the market.  On 4/16/01, Cisco announced a $2.5 billion write-down of
 inventory (or 90% of its inventory as of 1/31/01) of components in its service
 business.  This was one of the largest inventory write-downs in U.S. history.
 Cisco stock has dropped to as low as $13-3/16.
     Plaintiff seeks to recover damages on behalf of all purchasers of Cisco
 publicly traded securities during the Class Period (the "Class").  The
 plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has
 expertise in prosecuting investor class actions and actions involving
 financial fraud.
 
     Milberg Weiss Bershad Hynes & Lerach LLP, a 170-lawyer firm with offices
 in New York, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle and
 Philadelphia, is active in major litigations pending in federal and state
 courts throughout the United States.  Milberg Weiss has taken a leading role
 in many important actions on behalf of defrauded investors, consumers, and
 companies, as well as victims of World War II and other human rights
 violations, and has been responsible for more than $30 billion in aggregate
 recoveries.  The Milberg Weiss website (http://www.milberg.com) has more
 information about the firm.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X35754363
 
 SOURCE  Milberg Weiss Bershad Hynes & Lerach LLP