Probing stocks for shorts

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Form 8-K for NETOPIA INC


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3-Nov-2004

Other Events



Item 8.01. Other Events
On October 29, 2004, Netopia, Inc. was advised by the Securities and Exchange Commission that the previously-disclosed informal inquiry that the Securities and Exchange Commission commenced to determine whether the federal securities laws have been violated has become the subject of a formal order of investigation. Netopia has cooperated fully with the informal inquiry, and intends to continue to cooperate fully with the formal investigation.

Responding to the formal inquiry commenced by the Securities and Exchange Commission described above could require significant diversion of management's attention and resources in the future. For example, if the Securities and Exchange Commission elects to pursue an enforcement action, the defense against this type of action could be costly and require additional management resources. If Netopia is unsuccessful in defending against this or other investigations or proceedings, Netopia may face civil or criminal penalties that would seriously harm Netopia's business and results of operations.