Shareholder Sues Oclaro Over Earnings Forecasts

Law360, New York (June 30, 2011, 12:33 PM EDT) -- An Oclaro Inc. shareholder filed suit against the optical technology provider’s directors and officers in California on Tuesday for issuing allegedly misleading earnings forecasts that provoked a securities fraud class action.

The shareholder derivative complaint claims that Oclaro’s executives breached their fiduciary duties and squandered company assets by broadcasting idealistic projections for 2011 that they knew were unattainable. The forecasts allegedly inflated the value of the company stock and incurred shareholder wrath when the actual earnings were revealed.

“[T]he individual defendants had a duty to promptly...
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