Hagens Berman Sobol Shapiro LLP reminds investors with losses exceeding $300,000 of the May 11 deadline to file for lead plaintiff status in the lawsuit against Finisar Corporation (the “Company” or “Finisar”) (NASDAQ:FNSR). The investor-rights law firm also advances its investigation into Finisar for securities fraud and insider selling allegations.
A 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. FNSR investors who purchased common stock from the Company during the Class Period and experienced losses exceeding $300,000 are encouraged to contact Hagens Berman partner Reed R. Kathrein at 510-725-3030 for a personal consultation. Investors may also contact the firm’s legal team at FNSR@hbsslaw.com.
“We are closely investigating what senior management at Finisar knew when they sold stock in December 2010 and when they adopted stock sales plans in September and October,” said Mr. Kathrein, who is leading the investigation against Finisar. “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.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.