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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.

Stephen Shankland Former Principal Writer
Stephen Shankland worked at CNET from 1998 to 2024 and wrote about processors, digital photography, AI, quantum computing, computer science, materials science, supercomputers, drones, browsers, 3D printing, USB, and new computing technology in general. He has a soft spot in his heart for standards groups and I/O interfaces. His first big scoop was about radioactive cat poop.
Expertise Processors, semiconductors, web browsers, quantum computing, supercomputers, AI, 3D printing, drones, computer science, physics, programming, materials science, USB, UWB, Android, digital photography, science. Credentials
  • Shankland covered the tech industry for more than 25 years and was a science writer for five years before that. He has deep expertise in microprocessors, digital photography, computer hardware and software, internet standards, web technology, and more.
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Stephen Shankland
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.