NEW YORK, Oct. 9, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Applied Optoelectronics, Inc. ("Applied Optoelectronics" or the "Company") (NASDAQ: AAOI) of the November 30, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Applied Optoelectronics stock or options between August 7, 2018 and September 27, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/AAOI. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Southern District of Texas on behalf of all those who purchased Applied Optoelectronics securities between August 7, 2018 and September 27, 2018 (the "Class Period"). The case, Taneja v. Applied Optoelectronics, Inc., et al., No.18-cv-03544 was filed on October 1, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) certain of the Company's lasers were susceptible to fail prematurely; and (2) certain of the Company's transceivers utilizing these lasers would be materially affected.
Specifically, on September 27, 2018, James Kisner, an analyst with Loop Capital Markets downgraded the Company's stock from Hold to Sell, justifying the downgrade by citing emerging "product quality issues" with the Company's 100G CWDM4 transceivers.
On this news, the Company's share price fell from $31.34 per share on September 26, 2018 to $28.36 per share on September 27, 2018—a $2.98 or 9.51% drop.
Then, on September 28, 2018, the Company issued a press release entitled "Applied Optoelectronics Updates Third Quarter 2018 Revenue Guidance," in which the Company lowered its revenue guidance and announced a temporary suspension of shipments for certain transceivers utilizing affected lasers.
On this news, the Company's stock price fell from $28.36 per share on September 27, 2018 to $24.66 per share on September 28, 2018—a $3.70 or 13.05% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Applied Optoelectronics' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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