WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Applied Optoelectronics, Inc. (“Applied Optoelectronics” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Southern District of Texas by another law firm on behalf of purchasers of the common stock of Applied Optoelectronics (NASDAQ: AAOI) between August 7, 2018 and September 27, 2018, inclusive (the “Class Period”).
The complaint alleges that Applied Optoelectronics and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) certain of the Company's lasers were susceptible to fail prematurely; (2) certain of the Company's transceivers utilizing these lasers would be materially affected; and (3) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On September 27, 2018, the last day of the Class Period, 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. The Company’s share price fell $2.98 per share, more than 9%, to close at $28.36 per share on September 27, 2018, on unusually heavy trading volume. On September 28, 2018, the Company cut its revenue guidance for the third quarter 2018 because of the identified issue with its lasers which required temporarily suspending shipments of certain transceivers.
Cohen Milstein encourages all investors who purchased Applied Optoelectronics common stock between August 7, 2018 and September 27, 2018, or former employees with information concerning this matter to contact the firm.
If you are an Applied Optoelectronics shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at email@example.com. If you wish to serve as lead plaintiff, you must move the Court no later than November 30, 2018 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: firstname.lastname@example.org; email@example.com