Science & Technology
Science and Technology
Science and Technology
Tue, April 12, 2011
Mon, April 11, 2011
Hagens Berman Reminds FNSR Investors of May 11 Deadline for Finisar Corp. Lawsuit and Advances Securities Fraud Investigation
BERKELEY, Calif.--([ BUSINESS WIRE ])--Hagens Berman Sobol Shapiro LLP reminds investors with losses exceeding $300,000 of the May 11 deadline to file for lead plaintiff status in the lawsuit against Finisar Corporation (the aCompanya or aFinisara) (NASDAQ:FNSR). The investor-rights law firm also advances its investigation into Finisar for securities fraud and insider selling allegations.
"Our concern is that they may have engaged in unusual insider selling at the end of 2010 when customersa™ large inventory holdings and competitive pressures should have been recognized."
A lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of purchasers of Finisar Corp. common stock during the proposed aClass Perioda between December 2, 2010, and March 8, 2011. FNSR investors who purchased common stock from the Company during the Class Period and experienced losses exceeding $300,000 are encouraged to contact Hagens Berman partner Reed R. Kathrein at 510-725-3030 for a personal consultation. Investors may also contact the firma™s legal team at [ FNSR@hbsslaw.com ].
aWe are closely investigating what senior management at Finisar knew when they sold stock in December 2010 and when they adopted stock sales plans in September and October,a said Mr. Kathrein, who is leading the investigation against Finisar. aOur concern is that they may have engaged in unusual insider selling at the end of 2010 when customersa™ large inventory holdings and competitive pressures should have been recognized.a
Hagens Berman is interested to speak with witnesses who may have additional information regarding these claims, as well as information about allegations that the company issued misleading and materially false financial statements.
Based in Sunnyvale, Calif., Finisar is a seller of fiber optic subsystems and network components. The lawsuit alleges that Finisar and certain of its officers and directors violated sections of the Securities Exchange Act of 1934.
Finisar may have artificially manipulated its stock price, which peaked at $43.23 per share on February 14, 2011, when the defendants concealed competitive pressures and decreased demand, the lawsuit states. Furthermore, the lawsuit states that Finisar failed to attribute its recent revenue growth to an oversupply of inventory in the market.
After the market closed on March 8, 2011, Finisar announced weak fiscal year 2011 third quarter results and fourth quarter projected revenues, which were lower than analystsa™ estimates. As a result, Finisara™s stock fell nearly 39 percent, or $15.43 per share, to close at $24.61 per share on March 9, 2011.
Hagens Bermana™s investigation seeks to scrutinize the following allegedly concealed information:
(a) The extent to which Finisara™s recent revenue surge was due to an inventory build by the Companya™s customers;
(b) Finisara™s experience of increasing pricing pressures due to intense competition in the industry, and as a result, being forced to concede to steep discounts in order to retain certain customers; and
(c) Finisara™s experience of a serious slowdown in business from China.
More information about the case is available at: [ www.hbsslaw.com/fnsr ]
[ About Investor Fraud Practice ]
Hagens Berman is a nationally recognized investor-rights law firm that provides highly acclaimed fraud recovery and asset protection services to individual and institutional investors who have been negatively affected by poor corporate governance, breach of fiduciary duties, misrepresentation of information, or a failure of good faith, fair dealing or loyalty. We have successfully prosecuted hundreds of cases including the recent class-action lawsuit against Charles Schwab & Co, which resulted in a $235 million settlement on behalf of investors. For an in-depth discussion of securities fraud, corporate governance and investor rights, please visit our [ Meaningful Disclosure blog ].
Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation with offices in Boston, Chicago, Colorado Springs, Los Angeles, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and [ whistleblowers ]. More information about the firm is available at [ www.hbsslaw.com ].
