RADNOR, Pa., Oct. 31, 2018 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds Applied Optoelectronics, Inc. (Nasdaq: AAOI) (“Applied Optoelectronics”) investors that a securities fraud class action lawsuit has been filed in the United States District Court for the Southern District of Texas (Houston Division) against Applied Optoelectronics on behalf of purchasers of Applied Optoelectronics securities between August 7, 2018 and September 27, 2018, inclusive (the “Class Period”).
Important Deadline Reminder: Investors who purchased Applied Optoelectronics securities during the Class Period may, no later than November 30, 2018, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit www.ktmc.com/applied-optoelectronics-securities-class-action
According to the complaint, Applied Optoelectronics purports to design and to manufacture fiber-optic networking products, primarily for four networking end-markets: internet data center, cable television, telecommunications, and fiber-to-the-home.
The Class Period commences on August 7, 2018, when Applied Optoelectronics published a press release announcing the second quarter 2018 financial results.
The complaint alleges that, on September 27, 2018, an analyst with Loop Capital Markets downgraded Applied Optoelectronics 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 Applied Optoelectronics would start procuring lasers externally through 2019. Following this news, Applied Optoelectronics’ share price fell $2.98 per share, more than 9%, to close at $28.36 per share on September 27, 2018.
Then, on September 28, 2018, Applied Optoelectronics cut its revenue guidance for the third quarter 2018 because it had identified an issue with its lasers that caused them to temporarily suspend shipments of certain transceivers. Following this news, Applied Optoelectronics’ share price fell $3.70 per share, more than 13%, to close at $24.66 per share on September 28, 2018, on unusually high trading volume.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) certain of Applied Optoelectronics’ lasers were susceptible to fail prematurely; (2) certain of Applied Optoelectronics’ transceivers utilizing these lasers would be materially affected; and (3) as a result of the foregoing, the defendants’ positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you wish to discuss this securities fraud class action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299–7706 or (610) 667–7706, or via e-mail at email@example.com.
Applied Optoelectronics investors may, no later than November 30, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087