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Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Oclaro, Inc.

^{Published on 2011-05-19 15:06:13 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/oclaro/ ]) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Oclaro, Inc. (aOclaroa) (NASDAQ:OCLR) common stock during the period between May 6, 2010 and October 27, 2010 (the aClass Perioda).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffsa™ counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/oclaro/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Oclaro and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Oclaro is a leading provider of high-performance core optical network components, modules and subsystems to global telecom equipment manufacturers.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s current business and financial condition, including projections for its first quarter 2011 and fiscal 2011 revenues, earnings and gross margins. As a result of defendantsa™ false statements, Oclaro stock traded at artificially inflated prices during the Class Period, reaching a high of $17.07 per share on October 17, 2010.

On October 28, 2010, before the market opened, Oclaro reported first quarter 2011 earnings per share of $0.01 as compared to analyst estimates of $0.22. The Company also posted sequential gross margin declines and reported that its anticipated second quarter 2011 revenues, earnings and gross margins, which it had previously indicated would post accelerated gains, would also be down, all as a result of sudden customer inventory corrections and weak demand visibility, among other things. On this news, Oclaroa™s stock price fell 37% to close at $8.60 per share on October 28, 2010, from a close of $13.68 per share on October 27, 2010, on high volume.

According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) demand for Oclaroa™s products, which have sales cycles of one year, was flat or declining well before October 28, 2010; (b) the Company did not have a reasonable basis for its forecast of accelerated gross margin growth or that orders for Oclaro products would cover forecasted financial results; and (c) Oclaroa™s capacity to meet forecasted revenues, earnings, and margin growth was severely compromised.

Plaintiffs seek to recover damages on behalf of all purchasers of Oclaro common stock during the Class Period (the aClassa). The plaintiffs are represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.