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Did Brad Reese tee up Cisco CEO John Chambers as a defendant in a new insider trading class action lawsuit?
Fri, 4/1/11 - 3:23pm    View comments

John ChambersYesterday, Cisco CEO John Chambers was named as a Defendant in a new insider trading class action lawsuit brought by Plaintiff - Harry Schipper (who's previously been involved as a Plaintiff in a class action lawsuit against TXU Corporation, now known as Energy Future Holdings).

Alarmingly in my opinion, Schipper's legal counsel is Robbins, Geller, Rudman and Dowd - who's original founding legal partner was the infamously disgraced and disbarred attorney:

William Lerach

"Lerach pled guilty to one felony count of conspiracy to commit obstruction of justice and making false declarations under oath. On Monday February 11, 2008, Lerach was sentenced to two years in federal prison, two years' probation, fined $250,000, and ordered to complete 1,000 hours of community service because of his involvement in a kickback scheme.

On March 12, 2009, Lerach was disbarred by the California State Bar.

Lerach's former Milberg Weiss partner Melvyn Weiss was similarly sentenced. On March 20, 2008, Melvyn Weiss announced through his attorney that he would plead guilty to making illegal client kickbacks in exchange for an 18 to 33 month prison sentence and fines and restitution of $10 million."

According to the Plaintiff's legal document shown below (pages 4 and 5 of the PDF, pages 3 and 4 of the document) filed yesterday in the United States District Court - Northern District of California, Cisco CEO John Chambers is accused of being liable as a participant in a fraudulent scheme and course of conduct that operated as a fraud or deceit on purchases of Cisco's common stock by disseminating materially false and misleading statements and/or concealing material adverse facts. The scheme:

(i) deceived the investing public regarding Cisco's business, operations and management and the intrinsic value of Cisco's common stock;

(ii) allowed the individual defendants and certain company insiders to collectively sell approximately 2.2 million shares of their personally-held Cisco common stock for proceeds in excess of $52 million (detailed on pages 11 and 12 of the PDF, pages 10 and 11 of the document);

and (iii) caused Plaintiff and members of the class to purchase Cisco common stock at artificially inflated prices.

So why do I believe I might have had a hand in teeing up Cisco CEO John Chambers as a Defendant in this new insider trading class action lawsuit?

Well, back on May 17, 2010 I published a blog story that detailed Cisco CEO John Chambers' perfect timing when executing his insider Cisco stock trades and it now appears that Chambers' perfectly timed insider stock trades are listed as the "evidence of insider trading" in the Plaintiff's court filing (again detailed on pages 11 and 12 of the PDF, pages 10 and 11 of the legal document shown below):

Related story:

The law firm of Izard Nobel LLP has jumped into the new insider trading class action lawsuit against Cisco CEO John Chambers

What's your take, am I a hero or just a true blue villain?

Or as many of you already know and/or should have at least long possibly suspected, am I now confirmed as a totally whacked-out delusional psycho?

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