Weiss & Yourman Files Class Action Lawsuit Against Turnstone Systems, Inc.

Apr 10, 2001, 01:00 ET from Weiss & Yourman

    LOS ANGELES, April 10 /PRNewswire/ -- Weiss & Yourman announced that it
 has filed a class action complaint on behalf of all persons who acquired
 Turnstone Systems, Inc. (Nasdaq:   TSTN) securities between June 5, 2000 and
 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
 officers/directors with violations of Sections 10(b) and 20(a) of the
 Securities Exchange Act of 1934.
     If you are a member of the class described above, you may, no later than
 May 28, 2001, move the Court to serve as lead plaintiff, if you so choose.  If
 you wish to discuss this action, or have any questions concerning this notice,
 or your rights or interests with respect to this matter, please contact:
 Elizabeth P. Lin, Esq., Weiss & Yourman, 10940 Wilshire Blvd., 24th Floor, Los
 Angeles, CA  90024.  Telephone: (310) 208-2800 or Toll-free: (800) 437-7918.
 E-mail: info@wyca.com.
     Turnstone is a provider of technology for the digital subscriber line
 ("DSL") service industry.  The complaint alleges that the defendants were
 aware that Turnstone's primary product, the CX100, was fraught with problems,
 including blown capacitors, malfunctioning chips, and inaccurate calibration.
 Thus, contrary to defendants' representations in their public filings and
 other statements, the CX100 product was unreliable, inaccurate and inefficient
 in deploying DSL services to Turnstone's customers.  Furthermore, the
 complaint alleges that, during the Class Period, defendants failed to disclose
 that as a result of the malfunctioning of the CX100, certain of Turnstone's
 key customers were returning the product.  Moreover, the complaint alleges
 that defendants failed to disclose that the financial condition of many of its
 customers was deteriorating, and that this was adversely affecting Turnstone.
     On January 2, 2000, Turnstone announced that its fourth quarter 2000
 revenue would be substantially below market estimates because customers had
 cancelled or reduced their orders.  As a result, the Company announced revenue
 of $26 to $28 million for 4Q 2000, 37% lower than consensus market analyst
 estimates.  The Company also disclosed that it expected to take a $13 million
 to $15.5 million charge to increase inventory reserves and bad debt reserves,
 causing Turnstone to forecast an operating loss of $12 million to $14 million
 for the quarter.
     Plaintiff seeks to recover damages on behalf of all purchaser of Turnstone
 common stock during the Class Period.  Plaintiff is represented by Weiss &
 Yourman, who has extensive experience in securities class actions.  More
 information about Weiss & Yourman and this case is available on their website
 at www.wyca.com.
 
 

SOURCE Weiss & Yourman
    LOS ANGELES, April 10 /PRNewswire/ -- Weiss & Yourman announced that it
 has filed a class action complaint on behalf of all persons who acquired
 Turnstone Systems, Inc. (Nasdaq:   TSTN) securities between June 5, 2000 and
 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
 officers/directors with violations of Sections 10(b) and 20(a) of the
 Securities Exchange Act of 1934.
     If you are a member of the class described above, you may, no later than
 May 28, 2001, move the Court to serve as lead plaintiff, if you so choose.  If
 you wish to discuss this action, or have any questions concerning this notice,
 or your rights or interests with respect to this matter, please contact:
 Elizabeth P. Lin, Esq., Weiss & Yourman, 10940 Wilshire Blvd., 24th Floor, Los
 Angeles, CA  90024.  Telephone: (310) 208-2800 or Toll-free: (800) 437-7918.
 E-mail: info@wyca.com.
     Turnstone is a provider of technology for the digital subscriber line
 ("DSL") service industry.  The complaint alleges that the defendants were
 aware that Turnstone's primary product, the CX100, was fraught with problems,
 including blown capacitors, malfunctioning chips, and inaccurate calibration.
 Thus, contrary to defendants' representations in their public filings and
 other statements, the CX100 product was unreliable, inaccurate and inefficient
 in deploying DSL services to Turnstone's customers.  Furthermore, the
 complaint alleges that, during the Class Period, defendants failed to disclose
 that as a result of the malfunctioning of the CX100, certain of Turnstone's
 key customers were returning the product.  Moreover, the complaint alleges
 that defendants failed to disclose that the financial condition of many of its
 customers was deteriorating, and that this was adversely affecting Turnstone.
     On January 2, 2000, Turnstone announced that its fourth quarter 2000
 revenue would be substantially below market estimates because customers had
 cancelled or reduced their orders.  As a result, the Company announced revenue
 of $26 to $28 million for 4Q 2000, 37% lower than consensus market analyst
 estimates.  The Company also disclosed that it expected to take a $13 million
 to $15.5 million charge to increase inventory reserves and bad debt reserves,
 causing Turnstone to forecast an operating loss of $12 million to $14 million
 for the quarter.
     Plaintiff seeks to recover damages on behalf of all purchaser of Turnstone
 common stock during the Class Period.  Plaintiff is represented by Weiss &
 Yourman, who has extensive experience in securities class actions.  More
 information about Weiss & Yourman and this case is available on their website
 at www.wyca.com.
 
 SOURCE  Weiss & Yourman