US networking equipment company 3Com Corp is the latest networking company to have a standard class action lawsuit filed against it for misleading investors about the value of the market for its modems. The suit alleges that 3Com Corp executives have sold stock with the knowledge that public statements were misleading, and follows a second quarter profit warning (CI No 3,302). It comes in the wake of similar suits filed against Ascend Communications Inc and Silicon Graphics Inc already this week.
