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Tech Industry

Gadzoox sued over IPO claims

Shareholders have sued Gadzoox Networks, alleging that the maker of networking equipment issued false statements when describing its 1999 initial public offering. Law firm Schiffrin & Barroway said Gadzoox and IPO underwriters Credit Suisse First Boston and BancBoston Robertson Stephens "solicited and received undisclosed commissions" from some investors in exchange for shares in the IPO. Gadzoox was not immediately available for comment. In addition, Gadzoox on Friday named David Eichler chief financial officer and Kristin Strout vice president of human resources. The company has been in turmoil and is banking on a new switch but missed financial estimates in April. In May, fund manager Galleon Group invested $14.8 million in Gadzoox.

Shareholders have sued Gadzoox Networks, alleging that the maker of networking equipment issued false statements when describing its 1999 initial public offering. Law firm Schiffrin & Barroway said Gadzoox and IPO underwriters Credit Suisse First Boston and BancBoston Robertson Stephens "solicited and received undisclosed commissions" from some investors in exchange for shares in the IPO. Gadzoox was not immediately available for comment.

In addition, Gadzoox on Friday named David Eichler chief financial officer and Kristin Strout vice president of human resources. The company has been in turmoil and is banking on a new switch but missed financial estimates in April. In May, fund manager Galleon Group invested $14.8 million in Gadzoox.