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Oklahoma City, OK (October 11, 2018) – On October 1, 2018, a securities class action lawsuit was filed in the United States District Court for the Southern District of Texas against Applied Optoelectronics, Inc. (NASDAQ: AAOI). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is August 7, 2018 through September 27, 2018. More specifically, the complaint alleges Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) certain of the Company’s lasers were susceptible to fail prematurely; (ii) certain of the Company’s transceivers utilizing these lasers would be materially affected; and (iii) as a result of the foregoing, Optoelectronics’ public statements were materially false and misleading at all relevant times.
On September 27, 2018, 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. On this news, the Company’s stock price fell $2.98 per share, or more than 9%, to close at $28.36 per share on September 27, 2018, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of all Applied Optoelectronics, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Friday, November 30, 2018 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at email@example.com