15 November 1998: Add USDC-NJ court docket.
13 November 1998: Add notices of two additional class action suits.
12 November 1998: The US District Court for the District of New Jersey does not list the case via PACER. A copy of the complaint would be appreciated; we'll transcribe and offer here: Fax 212-799-4003. Comments and information on the suit welcome <email@example.com>.
12 November 1998: Dr. Leo Guthart, Cylink Board Chairman (516-921-6704) has not returned a message asking for his response to the suit. A request to Mr. William Crowell, Cylink CEO, for a response to the suit was answered yesterday by Mr. Gene Carossa, Cylink Public Relations (408-328-5125), who said he would pass the inquiry to Mr. Crowell. A relayed request for response yesterday to Mr. Jim Omura, Cylink Chief Scientist, has not been answered. Requests for response have been made to former Cylink employees and others involved in disputes with Cylink.
Mr. William Lerach, Milberg Weiss (800-449-4900), did not return repeated calls yesterday.
11 November 1998: Cylink's investor relations spokeperson, Mr. Howard Kalt (415-397-2686), said that Cylink has not yet been served with the complaint described below, and that Cylink has retained Wilson, Sonsini, Goodrich & Rosatis as legal counsel in the matter to vigorously defend against the allegations.
11 November 1998
Source: Business Wire, 10 November 1998
SAN DIEGO--(BUSINESS WIRE)--Nov. 10, 1998--Milberg Weiss today announced that a class action has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of Cylink Corp. ("Cylink") (NASDAQ:CYLK) common stock during the period March 16, 1998 to Nov. 4, 1998 (the "Class Period").
The complaint charges Cylink and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that public investors who invested in Cylink based on the Company's reported financial results, its representations about the success and continuing strong demand of Cylink information security products and its forecasts of strong revenue and earnings growth in 1997-1998, paid as high as $15-7/8 per share for Cylink stock during the Class Period and have suffered millions of dollars in damage as a result of defendants' fraud.
During 1998, Cylink reported favorable financial results with strong revenue growth and profitability causing the Company's stock to trade at artificially inflated levels. Ultimately, Cylink admitted that those financial results were materially false and misleading. Cylink's reported revenues will be restated and reduced by 37% and the previously reported profits will be converted into large losses. Upon these startling revelations, Cylink's stock price has decreased to $3-11/16 per share, a more than 77% reduction from its Class Period high of $15-7/8.
Plaintiffs seek to recover damages on behalf of all purchasers of Cylink common stock during the Class Period (the "Class"). They are represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Milberg Weiss has been actively engaged in commercial
litigation, emphasizing securities and antitrust class actions, for more
than 30 years. The firm has offices in New York, San Diego, San Francisco
and Los Angeles and 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 to major positions in complex multi-district or consolidated
litigations. Milberg Weiss has taken a lead role in numerous important actions
on behalf of defrauded investors, and has been responsible for a number of
outstanding recoveries which, in the aggregate, total approximately $2 billion.
Visit the firm's website at
If you are a member of the Class described above, you may, no later than 60 days from Nov. 6, 1998, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at firstname.lastname@example.org.
CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP William Lerach, 800/449-4900 email@example.com
Source: http://www.cylink.com (Press Release 5 November 1998)
SUNNYVALE, Calif. --November 5th, 1998--Cylink Corporation (Nasdaq: CYLK), announced today that its independent accountants are assisting the Company in a review of its revenue recognition practices. The preliminary review indicates that revenue reported in the first and second quarters of 1998 was overstated by approximately $5.0 million and $6.7 million, respectively, which would result in restated revenues of approximately $10.8 million for the quarter ended March 29, 1998 and $11.3 million for the quarter ended June 28, 1998. Expected revenue for the quarter ended September 27, 1998 is approximately $12.1 million.
The above figures are preliminary estimates and are subject to further adjustment upon completion of the review. In addition, substantial operating losses are expected to be reported for each of the three quarters in the period ended September 27, 1998. The revised financial results will be subject to the Company's annual audit. Accordingly, there can be no assurance that these preliminary revenue estimates will not change or that other adjustments will not be made in the annual financial audit process.
William P. Crowell, Cylink's newly-appointed President and acting Chief Executive Officer, indicated that "the Company's new senior management team, in conjunction with its independent financial accountants and the Board of Directors, is completing a financial and operational review and expects to report final financial results for the third quarter and restated results for the two prior fiscal quarters in approximately three weeks."
Based on the review to date, Crowell indicated that management does not expect the review to have a material impact on previously reported results for 1997. Crowell was appointed President and acting Chief Executive Officer earlier this week, after serving as Cylink's vice president of product management and strategy for the past ten months. He previously served as Deputy Director and chief operating officer of the National Security Agency (NSA). There he guided and directed the development of strategies and policies, and served as the principal advisor to the Director.
In October 1998, Cylink's Board of Directors appointed Roger A. Barnes as the Company's new Chief Financial Officer. Barnes began his career with KPMG Peat Marwick, where he spent over seven years, and he has held a number of executive and financial management positions in high technology companies since 1977.
Cylink Corporation, and its wholly owned subsidiary, Algorithmic Research, are leading providers of encryption-based network security solutions. Their products enable the secure transmission of data over networks, including local-area networks (LANs), wide-area networks (WANs), and public packet-switched networks such as the Internet. Cylink and Algorithmic Research serve Fortune 500 companies, multinational financial institutions, and government agencies worldwide.
Source: http://www.cylink.com (Press Release 4 November 1998)
SUNNYVALE, Calif. --November 4th, 1998--Cylink Corporation's (Nasdaq: CYLK) Board of Directors today named William Crowell, former vice president of product management and strategy, as President and acting CEO of Cylink. The Board also accepted the resignation of former President and Chief Executive Officer Fernand Sarrat. Sarrat, who had been president and CEO since November 1996, has also resigned from his seat on the Board of Directors.
William Crowell has more than 20 years of executive management experience in both private industry and government. He previously served as Deputy Director and chief operating officer of the National Security Agency (NSA). There he guided and directed the development of strategies and policies, and served as the principal advisor to the Director. Crowell has extensive knowledge of the technologies needed to achieve integrated network security, including encryption technology, digital signatures, and public key infrastructure issues. He also has experience managing research and development projects, and programs associated with information systems deployment.
"We thank Fernand for his contribution and wish him continued success in the future," stated Leo Guthart, chairman of the Board of Directors for Cylink. "We strongly believe that Bill Crowell's managerial expertise and tremendous knowledge of the information security market is what is needed to direct Cylink's future."
"My relationship with the Cylink team has been rewarding and I look forward to working with them in a consulting capacity," Sarrat said. "Bill Crowell is an outstanding security expert and executive, and one of the finest people I have ever worked with. I look forward to our continued association." Sarrat will now work with Cylink on a consulting basis for a five-year period.
Crowell has also been recognized extensively for his public service. Some of his many awards include the Department of Defense Distinguished Civilian Service Award, the President's National Security Medal, and the Senior Executive Association Professional Development League Award for Distinguished Executive Service. He also received the Presidential Rank Awards of Meritorious Executive and Distinguished Executive and the National Intelligence Distinguished Service Medal.
Other Management Changes
Cylink also announced that Tom Butler, vice president of Sales and Marketing, has resigned effective October 30 to pursue other interests. Other management changes include John Daws, former chief financial officer and vice president of Business Development, is no longer an employee of the Company.
About Cylink [Omitted]
Source: http://www.cylink.com (Press Release 21 October 1998)
SUNNYVALE, Calif. --September 24, 1998--Cylink Corporation (Nasdaq: CYLK), a leading provider of network security products and VPN solutions since 1984, today announced three management changes designed to reinforce the Company's commitment to becoming one of the world's leading suppliers of cryptographic-based network security solutions.
John Kalb, 51, Cylink's former vice president of Business Development, has been named vice president, Cylink, and Chairman of Cylink's Algorithmic Research (AR) subsidiary, based in Tel Aviv. He will be responsible for overseeing AR's sales and marketing, research and development, as well as Cylink and AR's Internet product strategy. Kalb joined Cylink in January 1997.
John Daws, 54, Cylink's former CFO, now becomes vice president of Business Development. In his new role, Daws will utilize his extensive financial and business development experience to drive Cylink's technology partnerships and acquisitions strategy. Daws joined Cylink in September 1995.
Roger Barnes, 50, today joins Cylink as vice president and Chief Financial Officer. Barnes is the former chief financial officer of Evolving Systems, Inc. (Nasdaq:EVOL), a leading provider of software and services for the telecommunications industry in Englewood, Colorado. Prior to Evolving Systems, Barnes was president and CEO of Formida Software Corp., located in San Jose, Calif. Additionally, he has held executive-level positions in the high technology industry for over 20 years.
"I'm confident that with these changes now in place, Cylink is moving down a more accelerated path in expanding our market opportunities and strengthening our internal operations," said Fernand Sarrat, Cylink's President and CEO. "Each of these individuals bring to their positions unique talent and industry expertise that will solidify Cylink's position in the network security marketplace."
Cylink also announced that it would reschedule the reporting of its third quarter financial results until November 5, 1998.
About Cylink [Omitted]
William P. Crowell, President
Mr. Crowell brings to Cylink an extensive knowledge of the security marketplace through his experience as a Vice President at Atlantic Aerospace Electronics Corporation, and most recently as Deputy Director at the National Security Agency. He has written numerous articles on information technology and information security and made presentations on these subjects to professional conferences, university symposiums, associations, Congressional hearings, and international groups. He has a BA from Louisiana State University, and has attended programs at George Washington University and Harvard University.
Peter Slocum VP, Engineering
Mr. Slocum has more than 20 years experience in developing, managing and leading a variety of software and hardware technology efforts in both large and small companies. Most recently, he was vice president of engineering at Octel Communications. He holds a BA in Computer Science from the State University of New York at Buffalo, an MS in Computer Science from Georgia Tech, and an MBA from UC Berkeley.
Bob Fougner, Esq., General Counsel
Prior to joining Cylink, Mr. Fougner was a partner with the New York firm of Hill, Betts & Nash, where he practiced law for twelve years. He graduated with a BBA from George Washington University and holds a JD from Tulane Law School.
Sarah Engel, VP, Human Resource and Organization Effectiveness
Ms. Engel comes to Cylink with more than 30 years experience in the fields of organization and employee development. For the past ten years she has managed an international consulting firm specializing in strategic planning, organization architecture, leadership development, cycle time reduction, and the management of change. Prior to that she was director of training and development for Exxon Corporation and Exxon Chemical Company. Ms. Engel holds an AB from the University of Pennsylvania, and an MA and EdD in Organization Behavior from Temple University.
Paul Massie, VP, Chief Information Officer
Mr. Massie comes to Cylink from Bay Networks where he was the director of information systems. In addition, he was director of computing for Sun Microsystems, Inc. and director of computer systems and telecommunications for Sterling Software. He holds a BS in Mathematics and a MS in Electrical Engineering from the University of Missouri.
[As currently shown at the Cylink Web site, apparently prior to reorganization, see Sarrat listing; unknown current composition]
Dr. Leo A. Guthart
Chairman of the Board
Vice Chairman, Pittway
Dr. William J. Perry
Former U.S. Secretary of Defense (1994-1997)
Dr. Howard L. Morgan
President, Arca Group
Dr. James H. Simons
Chairman, Renaissance Technologies
Dr. William W. Harris
Treasurer, Kids Pac
Dr. Elwyn Berlekamp
Professor of Mathematics, UC Berkeley
Chairman, The McKenna Group
Fernand B. Sarrat
President and Chief Executive Officer, Cylink
Managing Director, Algorithmic Research, Ltd.
13 November 1998
Wolf Popper LLP Files Class Action Against Cylink Corporation NEW YORK, Nov. 10 /PRNewswire/ -- Pursuant to Section 21D (a)(3)(A)(i) of the Private Securities Litigation Reform Act of 1995, Wolf Popper LLP hereby gives notice that a class action complaint has been filed in the United States District Court for the District of New Jersey on behalf of a Class of persons who purchased securities issued by Cylink Corporation (Nasdaq: CYLK) ("Cylink" or the "Company") at artificially inflated prices during the period March 16, 1998 through November 4, 1998, inclusive (the "Class Period") and who were damaged thereby. The Complaint, charges that, throughout the Class Period, the Company and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by engaging in a scheme to artificially inflate the market price of Cylink's securities by making misrepresentations and omissions of material fact concerning Cylink's publicly reported revenues, earnings, financial condition and growth prospects. If you have questions or information regarding this action, call or write: Paul O. Paradis, Esq. or Carl L. Stine, Esq. WOLF POPPER LLP 845 Third Avenue New York, NY 10022-6689 Telephone: 212-451-9676 212-451-9631 Toll Free: 877-370-7703 Facsimile: 212-486-2093 E-Mail: firstname.lastname@example.org or email@example.com Website: http://www.wolfpopper.com -------------- Attention Cylink Corporation Investors; Shareholder Class Action Update by the Law Firm of Abbey, Gardy & Squitieri, LLP NEW YORK, Nov. 10 /PRNewswire/ -- Notice is hereby given that a class action lawsuit was filed against Cylink Corporation (Nasdaq: CYLK) and certain of its officers and directors for violations of the federal securities laws. To discuss this action, please contact: Mark C. Gardy, Esq. Stephen J. Fearon, Esq. Abbey, Gardy & Squitieri, LLP 212 East 39th Street New York, New York 10016 Telephone: 800-889-3701 or 212-889-3700 Fax: 212-684-5191 e-mail: firstname.lastname@example.org - or - James Jay Seirmarco Abbey, Gardy & Squitieri, LLP 595 Market Street Suite 2500 San Francisco, California 94105 telephone: 415-538-3725 fax: 415-538-3775 e-mail: email@example.com
Public Access to Court Electronic Records Docket Report Output Menu Docket for case 2:98cv05110 consists of 2 pages. Report was generated on: 11/12/98 . X---------------------------------------------------------------------------X PACER session date: Sunday November 15, 1998 11:01:02 AM EST Docket as of November 12, 1998 11:17 pm Page 1 Proceedings include all events. 12BF 2:98cv5110 BALKHEIMER, et al v. CYLINK CORPORATION, et al 12BF U.S. District Court District of New Jersey (Newark) CIVIL DOCKET FOR CASE #: 98-CV-5110 BALKHEIMER, et al v. CYLINK CORPORATION, et al Filed: 11/10/98 Assigned to: Judge John C. Lifland Jury demand: Plaintiff Demand: $0,000 Nature of Suit: 850 Lead Docket: None Jurisdiction: Federal Question Dkt# in other court: None Cause: 15:78m(a) Securities Exchange Act PETER BALKHEIMER ALLYN ZISSEL LITE plaintiff [COR LD NTC] GOLDSTEIN, LITE & DEPALMA, LLC TWO GATEWAY CENTER 12TH FLOOR NEWARK, NJ 07102-5003 (973) 623-3000 LEONARD DEPHILLPS ALLYN ZISSEL LITE plaintiff (See above) [COR LD NTC] v. CYLINK CORPORATION defendant JOHN H. DAWS defendant FERNAND B. SARRAT defendant Docket as of November 12, 1998 11:17 pm Page 2 Proceedings include all events. 12BF 2:98cv5110 BALKHEIMER, et al v. CYLINK CORPORATION, et al 11/10/98 1 COMPLAINT filed; jury demand FILING FEE $ 150.00 RECEIPT # 254618 (HL) [Entry date 11/12/98] 11/10/98 2 NOTICE of Allocation and Assignment filed. Magistrate Judge STANLEY R. CHESLER (HL) [Entry date 11/12/98] 11/10/98 3 CERTIFICATE of NON-ARBITRABILITY on behalf of PETER BALKHEIMER, LEONARD DePHILLPS Re: [1-1] complaint (HL) [Entry date 11/12/98] 11/10/98 4 CERTIFICATION of LEONARD DEPHILLIPS Re: [1-1] complaint (HL) [Entry date 11/12/98] 11/10/98 5 CERTIFICATION of PETER BALKHEIMER Re: [1-1] complaint (HL) [Entry date 11/12/98] 11/12/98 -- SUMMONS(ES) issued for CYLINK CORPORATION, JOHN H. DAWS, FERNAND B. SARRAT ( 20 Days) (Mailed to Counsel) (HL) [END OF DOCKET: 2:98cv5110] X---------------------------------------------------------------------------X