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NEW YORK (Reuters)—A U.S. appeals court on Friday revived a shareholder lawsuit accusing Ikanos Communications Inc. of failing to properly disclose known defects in its semiconductor chips at the time it was conducting a 2006 stock offering.
The 2nd U.S. Circuit Court of Appeals said the plaintiffs plausibly alleged that Ikanos could have reasonably expected that the defects would materially cut revenue.
It said a lower court judge erred in refusing to let the plaintiffs amend their complaint, after having dismissed an earlier version.