Spector, Roseman & Kodroff, P.C. Files Class Action Suit Against Turnstone Systems, Inc.

Apr 13, 2001, 01:00 ET from Spector, Roseman & Kodroff, P.C.

    PHILADELPHIA, April 13 /PRNewswire/ -- The law firm of Spector, Roseman &
 Kodroff, P.C. announces that a class action lawsuit has been commenced in the
 United States District Court for the Northern District of California against
 defendant Turnstone Systems, Inc. (Nasdaq:   TSTN), ("Turnstone" or the
 "Company") and certain of its officers and directors, on behalf of purchasers
 of the stock of Turnstone during the period from June 5, 2000 through
 January 2, 2001, inclusive (the "Class Period"), including those who acquired
 their shares in connection with Turnstone's secondary offering on
 September 26, 2000.
     The complaint charges Turnstone and certain of its officers and directors
 with violations of the Securities Exchange Act of 1934.  Turnstone is a
 provider of technology for the digital subscriber line ("DSL") service
 industry.  Turnstone's first and primary product, the Copper CrossConnect
 CX100, enables telephone access providers to remotely evaluate, manage, and
 control the DSL connections within the telephone routing system, permitting
 identification of copper lines which are suitable for DSL and making
 installation and maintenance of DSL on those lines cheaper and easier.
 Turnstone's customer base consists almost entirely of Competitive Local
 Exchange Carriers, or "CLECs."
     The complaint alleges that contrary to defendants' representations during
 the Class Period, Turnstone's CX100 product was fraught with problems,
 including blown capacitors, malfunctioning chips, and inaccurate calibration
 of the CX100.  As a result, and contrary to the representations in the
 Registration Statement/Prospectus, the CX100 product was unreliable,
 inaccurate and inefficient in deploying DSL services to Turnstone's customers.
 Moreover, Turnstone's key customers were returning the product as a result of
 the malfunctioning of the CX100.
     After the market closed on January 2, 2001, Turnstone issued another press
 release warning investors that its 4thQ '00 revenue would be "substantially
 below" market estimates because its CLEC customers had cancelled and reduced
 their orders.  As a result, the Company announced revenue of $26 million to
 $28 million for the 4thQ '00, 37% lower than consensus market analyst
 estimates.  In the same press release, the Company also disclosed that it
 expected to take a $13.0 to $15.5 million charge to increase its inventory
 reserves and bad debt reserves, thus causing Turnstone to forecast an
 operating loss of $12 million to $14 million for the quarter.
     If you purchased Turnstone securities during the Class Period, you may, no
 later than May 29, 2001, move to be appointed as a Lead Plaintiff in this
 class action.  A Lead Plaintiff is a representative, chosen by the Court, that
 acts on behalf of other class members in directing the litigation.  The
 Private Securities Litigation Reform Act of 1995 directs Courts to assume that
 the class member(s) with the "largest financial interest" in the outcome of
 the case will best serve the class in this capacity.  Courts have discretion
 in determining which class member(s) have the "largest financial interest,"
 and have appointed Lead Plaintiffs with substantial losses in both absolute
 terms and as a percentage of their net worth.  If you have sustained
 substantial losses in Turnstone securities during the Class Period, please
 contact Spector, Roseman & Kodroff, P.C. at classaction@spectorandroseman.com
 for a more thorough explanation of the Lead Plaintiff selection process.  If
 you have relatively small losses, your ability to participate in any recovery
 will be protected by the Lead Plaintiff(s), and you need take no affirmative
 steps at this time.
     If you wish to discuss this action or have any questions concerning this
 notice or your rights or interests, please contact plaintiff's counsel Robert
 M. Roseman toll-free at 888-844-5862 or via E-mail at
 classaction@spectorandroseman.com.  For more detailed information about the
 firm please visit its website at http://www.spectorandroseman.com.
     Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania
 and San Diego, California, concentrates its practice in complex litigation
 including actions dealing with securities laws, antitrust, contract and
 commercial claims.  The firm is active in major litigation pending in federal
 and state courts throughout the United States.  The firm's reputation for
 excellence has been recognized on repeated occasions by courts which have
 appointed the firm as lead counsel in numerous major class actions involving
 violations of the federal securities laws and the federal antitrust laws, and
 consumer fraud.  As a result of the efforts of the firm, and its members,
 hundreds of millions of dollars have been recovered on behalf of thousands of
 defrauded shareholders and companies.
 
 

SOURCE Spector, Roseman & Kodroff, P.C.
    PHILADELPHIA, April 13 /PRNewswire/ -- The law firm of Spector, Roseman &
 Kodroff, P.C. announces that a class action lawsuit has been commenced in the
 United States District Court for the Northern District of California against
 defendant Turnstone Systems, Inc. (Nasdaq:   TSTN), ("Turnstone" or the
 "Company") and certain of its officers and directors, on behalf of purchasers
 of the stock of Turnstone during the period from June 5, 2000 through
 January 2, 2001, inclusive (the "Class Period"), including those who acquired
 their shares in connection with Turnstone's secondary offering on
 September 26, 2000.
     The complaint charges Turnstone and certain of its officers and directors
 with violations of the Securities Exchange Act of 1934.  Turnstone is a
 provider of technology for the digital subscriber line ("DSL") service
 industry.  Turnstone's first and primary product, the Copper CrossConnect
 CX100, enables telephone access providers to remotely evaluate, manage, and
 control the DSL connections within the telephone routing system, permitting
 identification of copper lines which are suitable for DSL and making
 installation and maintenance of DSL on those lines cheaper and easier.
 Turnstone's customer base consists almost entirely of Competitive Local
 Exchange Carriers, or "CLECs."
     The complaint alleges that contrary to defendants' representations during
 the Class Period, Turnstone's CX100 product was fraught with problems,
 including blown capacitors, malfunctioning chips, and inaccurate calibration
 of the CX100.  As a result, and contrary to the representations in the
 Registration Statement/Prospectus, the CX100 product was unreliable,
 inaccurate and inefficient in deploying DSL services to Turnstone's customers.
 Moreover, Turnstone's key customers were returning the product as a result of
 the malfunctioning of the CX100.
     After the market closed on January 2, 2001, Turnstone issued another press
 release warning investors that its 4thQ '00 revenue would be "substantially
 below" market estimates because its CLEC customers had cancelled and reduced
 their orders.  As a result, the Company announced revenue of $26 million to
 $28 million for the 4thQ '00, 37% lower than consensus market analyst
 estimates.  In the same press release, the Company also disclosed that it
 expected to take a $13.0 to $15.5 million charge to increase its inventory
 reserves and bad debt reserves, thus causing Turnstone to forecast an
 operating loss of $12 million to $14 million for the quarter.
     If you purchased Turnstone securities during the Class Period, you may, no
 later than May 29, 2001, move to be appointed as a Lead Plaintiff in this
 class action.  A Lead Plaintiff is a representative, chosen by the Court, that
 acts on behalf of other class members in directing the litigation.  The
 Private Securities Litigation Reform Act of 1995 directs Courts to assume that
 the class member(s) with the "largest financial interest" in the outcome of
 the case will best serve the class in this capacity.  Courts have discretion
 in determining which class member(s) have the "largest financial interest,"
 and have appointed Lead Plaintiffs with substantial losses in both absolute
 terms and as a percentage of their net worth.  If you have sustained
 substantial losses in Turnstone securities during the Class Period, please
 contact Spector, Roseman & Kodroff, P.C. at classaction@spectorandroseman.com
 for a more thorough explanation of the Lead Plaintiff selection process.  If
 you have relatively small losses, your ability to participate in any recovery
 will be protected by the Lead Plaintiff(s), and you need take no affirmative
 steps at this time.
     If you wish to discuss this action or have any questions concerning this
 notice or your rights or interests, please contact plaintiff's counsel Robert
 M. Roseman toll-free at 888-844-5862 or via E-mail at
 classaction@spectorandroseman.com.  For more detailed information about the
 firm please visit its website at http://www.spectorandroseman.com.
     Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania
 and San Diego, California, concentrates its practice in complex litigation
 including actions dealing with securities laws, antitrust, contract and
 commercial claims.  The firm is active in major litigation pending in federal
 and state courts throughout the United States.  The firm's reputation for
 excellence has been recognized on repeated occasions by courts which have
 appointed the firm as lead counsel in numerous major class actions involving
 violations of the federal securities laws and the federal antitrust laws, and
 consumer fraud.  As a result of the efforts of the firm, and its members,
 hundreds of millions of dollars have been recovered on behalf of thousands of
 defrauded shareholders and companies.
 
 SOURCE  Spector, Roseman & Kodroff, P.C.