A current long term investor in Finisar Corporation (NASDAQ:FNSR) shares filed a lawsuit against the board of directors and certain current and former officers over alleged breaches of fiduciary duty. The lawsuit by a current long term FNSR investor against directors and officers of Finisar Corp follows a lawsuit filed only for investors who purchased Finisar Corporation (NASDAQ: FNSR) shares during the period between December 2, 2010 and March 8, 2011.
According to that lawsuit filed in in the United States District Court for the Northern District of California the plaintiff alleges 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.

On March 8, 2011, after the close of trading, Finisar Corp. announced its financial results for its third quarter ended January 30, 2011. Finisar Corp. said it had record revenues exceeding $1.0billion annual run-rate. However 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.