Shareholder Class Action Filed Against Finisar Corporation by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP

RADNOR, Pa., April 4, 2011 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of purchasers of the securities of Finisar Corporation (NASDAQ: FNSR) ("Finisar" or the "Company"), who purchased or otherwise acquired Finisar securities between December 1, 2010 and March 8, 2011, inclusive (the "Class Period").  If you are a member of this class, you can view a copy of the Complaint or join this class action online at http://www.btkmc.com/cases/finisar/.

Members of the class may, not later than May 16, 2011, move the Court to serve as lead plaintiff of the class.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff.  Any member of the purported 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.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected].  For additional information about this lawsuit, or to join the class action online, please visit http://www.btkmc.com/cases/finisar/.

The Complaint charges Finisar and certain of its officers and directors with violations of the Securities Exchange Act of 1934.  Finisar is a technology company for fiber optic subsystems and components that enable high-speed voice, video and data communications for telecommunications, networking, storage, wireless, and cable TV applications. More specifically, the Complaint alleges that defendants failed to disclose and misrepresented the following material adverse facts which were known or recklessly disregarded by them: (1) that Finisar was facing increased competition, which would make it necessary for the Company to offer large discounts in order to retain certain customers; (2) that the Company was experiencing a significant slowdown in business in and from China; (3) that the Company's recent revenue numbers were due in part to the buildup of inventory by Finisar's customers, and that these customers would decrease the amount of products ordered from Finisar as they were left with an oversupply of inventory; (4) particular uncertainties and known trends regarding the Company's revenue growth rate (including the fact that Finisar would be unable to continue growing at the recent pace), as required by SEC regulations; (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, defendants' statements about the Company's operations and prospects lacked any reasonable basis when made.

Prior to and throughout the Class Period, defendants touted Finisar's surging revenue and the strong demand for Finisar products.  However, on March 8, 2011, Finisar shocked investors when it announced that its fourth quarter 2011 revenues would be lower than analyst estimates and in stark contrast to what defendants had intimated throughout the Class Period. The Company disclosed that, during the quarter, it would be impacted by the full three months of annual price negotiations with telecom customers, certain customers being shut down for the Chinese New Year in February, the adjustment of inventory levels at some telecom customers, and an overall slowdown in Chinese business.   On this news, shares of the Company's stock fell $15.43 per share, or 38.54 percent, to close on March 9, 2011 at $24.61 per share, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check, which prosecutes class actions in both state and federal courts throughout the country.  Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.

SOURCE Barroway Topaz Kessler Meltzer & Check, LLP