Hagens Berman Sobol Shapiro LLP today announced an investigation into Finisar Corporation (NASDAQ:FNSR) for securities fraud and insider selling. The law firm also notified FNSR shareholders that a securities lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of purchasers of Finisar Corp. common stock during the proposed “Class Period” between December 2, 2010 and March 8, 2011.
“Currently our investigation centers around what senior management at Finisar knew when they sold stock in December of 2010, and when they adopted stock sales plans in September and October,“ said Hagens Berman partner Reed Kathrein. “Our concern is that they may have engaged in unusual insider selling at the end of 2010 when customers’ large inventory holdings and competitive pressures should have been recognized.”
Hagens Berman is interested to speak with witnesses who may have additional information regarding these claims, as well as information about allegations that the company issued misleading and materially false financial statements.
Investors who wish to serve as lead plaintiff must move the court by May 13, 2011. Shareholders who purchased more than $100,000 worth of FNSR common stock after December 2, 2010 are encouraged to call Mr. Kathrein at 510-725-3000 for a personal consultation. Investors can also contact the Hagens Berman legal team through e-mail at FNSR@hbsslaw.com.Based in Sunnyvale, Calif., Finisar is a seller of fiber optic subsystems and network components. The lawsuit alleges that Finisar and certain of its officers and directors violated sections of the Securities Exchange Act of 1934. Finisar may have artificially manipulated its stock price, which peaked at $43.23 per share on February 14, 2011, when the defendants concealed competitive pressures and decreased demand, the lawsuit states. Furthermore, the lawsuit states that Finisar failed to attribute its recent revenue growth to an oversupply of inventory in the market.