Finisar Corporation Long Term Stockholder Investigation
An investor in FNSR shares filed a lawsuit on behalf of purchasers of Finisar Corporation common stock only during the period between December 2, 2010 and March 8, 2011, against Finisar Corp over alleged violations of Federal Securities Laws. Meanwhile an investigation on behalf of current long term investors of Finisar Corporation (NASDAQ:FNSR), including and in particular those who purchased (also) prior to December 2010 FNSR shares and presently continue to hold those shares was announced.
The investigation by a law firm on behalf of current long term investors in stock of Finisar Corporation (NASDAQ: FNSR) concerns whether certain current and/or former officers and members of Finisar Corp. board of directors and executive officers can be held liable in connection with the alleged Securities Laws violations in the lawsuit by investors who purchased FNSR stock between December 2, 2010 and March 8, 2011. According to the complaint filed in in the United States District Court for the Northern District of California the plaintiff alleges on behalf of purchasers of Finisar Corporation (NASDAQ:FNSR) common stock only during the period between December 2, 2010 and March 8, 2011, that Finisar Corp. violated the Securities Exchange Act of 1934 by issuing between December 2, 2010 and March 8, 2011 materially false and misleading statements regarding its business and financial results.
Finisar Corporation 12months Total Revenue went from $418.55million to $629.88 from April 30, 2007 to April 30, 2010. Finisar Corp. was able to come out of a Net Loss of $48.91million reported on April 30, 2007 to a Net Income of $14.13million reported on April 30, 2010.
Shares of Finisar Corporation (Public, NASDAQ:FNSR) traded during October 2010 under $20 per share
On December 1, 2010 Finisar Corporation (NASDAQ: FNSR), announced record quarterly revenues and profitability for its second quarter ended October 31, 2010. Shares of Finisar Corporation (FNSR) rose to almost $30 per share. Then on December 20, 2010 Finisar Corporation announced public offering of common stock. Shares of Finisar Corporation continued to increase to $43.22 on March 4, 2011.
Then on March 8, 2011, after the close of trading, Finisar Corp. announced its financial results for its third quarter ended Jnauary 30, 2011. Finisar Corp. said it had record revenues exceeding $1.0billion annual run-rate. Hoever Finisar Corp. also disclosed that it expected adjusted earnings in the range of approximately $0.31 to $0.35 per share for the three months ending April 30, 2011. According to analysts, on average, they had been looking for profits of about $0.44 cents per share.
Finisar’s revenue forecast for the fourth quarter of $235 million to $250 million fell short of Wall Street expectations for $258.6 million, so the investigation.
Finisar Corp. said in its March 8 announcement that it identified a slowdown in its business in China, a 10-day shutdown for Chinese New Year, and adjustments of inventory levels by some of its telecommunications customers as reasons for the shortfall.
Shares of Finisar Corporation fell from $40.04 on March 8, 2011 to $25 on March 9, 2011 and continued to decline to $22.58 on March 15, 2011. Recently FNSR shares traded above $25 per share.