Redback hit with shareholder lawsuit

Redback Networks, which warned last week that it would fall short of analysts' estimates in its second quarter, received some more bad news Tuesday when it was slapped with a shareholder lawsuit. Investors who bought Redback shares between May 17, 1999, and Dec. 6, 2000, claim the network-equipment maker issued "materially false and misleading" statements in its prospectus and failed to disclose other pertinent information regarding its relationship with several investment banking firms. Redback shares, which closed off 44 cents to $8.61 a share Tuesday, traded between $21.03 and $81.31 a share during the 19-month span identified in the complaint. New York-based law firm Milberg, Weiss, Bershad, Hynes & Lerach is representing the shareholders.