Cisco Execs Face Suit Over Alleged Stock Inflation

Law360, New York (April 6, 2011, 6:16 PM EDT) -- A shareholder hit Cisco Systems Inc. with a class action in California accusing company brass of artificially boosting stock prices and using insider information to sell their shares for $52 million, according to a complaint made public Tuesday.

The shareholder, Harry Schipper, said investors lost money when Cisco's stock price dropped after the telecommunications company announced that margins had fallen, despite positive quarterly financial reports, according to a suit filed in the U.S. District Court for the Northern District of California on March 31.

After releasing...
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