SAN DIEGO & SUGAR LAND, Texas--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Applied Optoelectronics, Inc. (NasdaqGM: AAOI) have filed a complaint against the company's officers and directors for alleged breaches of fiduciary duties, unjust enrichment, and violations of the Securities Exchange Act of 1934 from February 23, 2017 through the present. Applied Optoelectronics designs, manufactures, and sells various fiber-optic networking products worldwide.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/applied-optoelectronics-inc-aug-2018/
Applied Optoelectronics Accused of Downplaying Loss of Market Share
According to the complaint, Applied Optoelectronics represented that it had a competitive advantage over other transceiver manufacturers, allowing it to better fulfill customers' increasing demands and easily transition to faster transceivers. Amazon, Applied Optoelectronics' biggest customer, represented 35.4% of the company's revenue in 2017. On October 12, 2017, the company disclosed that Amazon had lowered its demand for 100G and 40G transceivers and its revenue from Amazon fell to 10% of its total revenue. Applied Optoelectronics' situation did not improve; on February 21, 2018, it announced that it had fallen behind in its transition from 40G to 100G, citing "customer-specific" issues. Since news of the company's troubles became public, its stock price fell over 53% to close at $27.51 on February 22, 2018.
Applied Optoelectronics Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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