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.
After the market closed on March 8, 2011, Finisar announced weak fiscal year 2011 third quarter results and fourth-quarter projected revenues, which were lower than analysts’ estimates. As a result, Finisar’s stock fell nearly 39 percent or $15.43 per share to close at $24.61 per share on March 9, 2011.Hagens Berman’s investigation seeks to scrutinize the following allegedly concealed information: (a) The extent to which Finisar’s recent revenue surge was due to an inventory build by the Company’s customers; (b) Finisar’s experience of increasing pricing pressures due to intense competition in the industry, and as a result, being forced to concede to steep discounts in order to retain certain customers; and (c) Finisar’s experience of a serious slowdown in business from China. More information about the case is available at: www.hbsslaw.com/fnsr. About Investor Fraud Practice Hagens Berman is a nationally recognized investor-rights law firm that provides highly acclaimed fraud recovery and asset protection services to individual and institutional investors who have been negatively affected by poor corporate governance, breach of fiduciary duties, misrepresentation of information, or a failure of good faith, fair dealing or loyalty. For an in-depth discussion of securities fraud, corporate governance and investor rights, please visit our Investor Fraud Website or our Meaningful Disclosure blog. About Hagens Berman Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is available at www.hbsslaw.com.