Harris Stratex Networks, Inc. faces a pending lawsuit on behalf of purchasers of the common stock of Harris Stratex Networks, Inc. common stock during the period from January 29, 2007 and July 30, 2008. Meanwhile an investigation on behalf of current long term investors in Harris Stratex Networks, Inc. (NASDAQ:AVNW), including those who purchased their AVNW shares as early as 2007 and continue to hold the AVNW shares, over possible shareholder claims was announced.
Aviat Networks, Inc., formerly Harris Stratex Networks, Inc., incorporated in 2006 and located in Morrisville, NC, together with its subsidiaries, is a global supplier of wireless network solutions and network management software, backed by a suite of professional services and support. An investor has filed a lawsuit in the United States District Court for the District of Delaware against Against Harris Stratex Networks, Inc. and certain officers and directors alleging materially false and misleading statements during the period from January 29, 2007 and July 30, 2008 about Harris Stratexs financial condition prior to and following its merger between Stratex Networks, Inc. and the Harris Microwave Communications Division.
Then On July 30, 2008, Harris Stratex Networks announced that it had discovered accounting errors which rendered its previously issued financial statements to be incorrect. According to the announcement, Harris Stratex Networks restated earnings reports from 2005 through the present. Harris Stratex Networks reported these accounting errors will cut previously reported pre-tax income by $18 million to $25 million. As a result of the restatement, Harris Stratex Networks announced that its prior financial statements for the first three quarters of fiscal 2008 and the fiscal years 2005 through 2007 should no longer be relied upon. Harris Stratexs share price fell in reaction to the announcement, falling from $11.24 to $7.35 per share a 34.61% decline in value. On July 29, 2009, the lead plaintiff filed a consolidated complaint and on September 28 and October 9, 2009, the defendants responded by filing several motions to dismiss.