The company reports on May 8. And it seems the experience has left some shareholders cynical. Law firm Milberg Weiss, which specialises in suing companies on behalf of shareholders, has filed a class action lawsuit alleging Cisco violated securities laws. The complaint alleges Cisco released false and misleading information about its financial results and its products.
Cisco is also in the legal news due to a former executive charged with fraud.
According to the Wall Street Journal, Cisco employees liquidated so many of their stock options last year that California's entire budget surplus can be attributed to the income tax payments. The Dow Jones Industrial Average also rose on Friday, gaining 1 per cent to 10,810 to sneak into the black for the year to date. The Nasdaq is down 16 per cent for the year. Stocks ended the week strongly after the release of data showing the US economy grew at a faster than expected 2 per cent in the first quarter, raising hopes a recession will be avoided. Your name, suburb and comments may be published in The Australian and on this site.