Market Overview

Robbins Arroyo LLP: Applied Optoelectronics, Inc. (AAOI) Misled Shareholders According to a Recently Filed Shareholder Lawsuit

Share:

Shareholder rights law firm Robbins
Arroyo LLP
announces that purchasers of Applied Optoelectronics,
Inc. (NasdaqGM: AAOI) have filed a complaint against the company's
officers and directors for alleged breaches of fiduciary duties, unjust
enrichment, and violations of the Securities Exchange Act of 1934 from
February 23, 2017 through the present. Applied Optoelectronics designs,
manufactures, and sells various fiber-optic networking products
worldwide.

View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/applied-optoelectronics-inc-aug-2018/

Applied Optoelectronics Accused of Downplaying Loss of Market Share

According to the complaint, Applied Optoelectronics represented that it
had a competitive advantage over other transceiver manufacturers,
allowing it to better fulfill customers' increasing demands and easily
transition to faster transceivers. Amazon, Applied Optoelectronics'
biggest customer, represented 35.4% of the company's revenue in 2017. On
October 12, 2017, the company disclosed that Amazon had lowered its
demand for 100G and 40G transceivers and its revenue from Amazon fell to
10% of its total revenue. Applied Optoelectronics' situation did not
improve; on February 21, 2018, it announced that it had fallen behind in
its transition from 40G to 100G, citing "customer-specific" issues.
Since news of the company's troubles became public, its stock price fell
over 53% to close at $27.51 on February 22, 2018.

Applied Optoelectronics Shareholders Have Legal Options

Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leonid Kandinov at
(800) 350-6003, LKandinov@robbinsarroyo.com,
or via the shareholder
information form
on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. Sign up for our FREE
portfolio monitoring service, Stock
Watch
.

Attorney Advertising. Past results do not guarantee a similar outcome.

View Comments and Join the Discussion!