NEW YORK, Oct. 12, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Applied Optoelectronics, Inc. (“Applied Optoelectronics” or the “Company”) (Nasdaq: AAOI) in the United States District Court for the Southern District of Texas on behalf of a class consisting of investors who purchased or otherwise acquired Applied Optoelectronics securities between August 7, 2018 through September 27, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
Applied Optoelectronics, Inc. develops and manufactures advanced optical products which are the building blocks for broadband and fiber access networks primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-market.
Furthermore, there is another class action lawsuit pending against the Company which was filed in 2017. The amended complaint in that lawsuit also alleges that the Company made false and misleading statements to the market and asserts a class period for investors who purchased or otherwise acquired Applied Optoelectronics securities between February 23, 2017 and February 21, 2018, both dates inclusive.
The Complaint in the class action lawsuit which was just recently filed alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) certain of the Company’s lasers were susceptible to fail prematurely; (ii) certain of the Company’s transceivers utilizing these lasers would be materially affected; and (iii) as a result of the foregoing, Optoelectronics’ public statements were materially false and misleading at all relevant times.
On September 27, 2018, an analyst with Loop Capital Markets downgraded the Company’s stock, reporting that the Company was experiencing product quality issues with certain transceivers in which its lasers fail after thousands of hours of operation. The analyst also lowered gross margin and revenue expectations because the product quality issues suggested that the Company would start procuring lasers externally through 2019.
On this news, the Company’s stock price fell $2.98 per share, or more than 9%, to close at $28.36 per share on September 27, 2018, on unusually heavy trading volume.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the November 30, 2018 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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