Shareholder Accuses Finisar Execs Of Fraud, Insider Trading

Law360, New York (May 9, 2012, 4:30 PM EDT) -- A shareholder hit some directors and executives of high-tech company Finisar Corp. with a derivative suit in California federal court on Friday accusing them of artificially inflating the firm’s value and cashing out millions in equity just before the company’s stock price crashed.

James Kenney alleges in his complaint that throughout 2010 and early 2011, the fiber-optic component maker misled investors, stating that revenue growth experienced by the firm was a result of “a steady, organic increase in demand for its products.” 

In reality, Kenney claims,...
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