Following a 20% stock drop an investigation on behalf of investors in shares of Zoran Corporation (NASDAQ:ZRAN) over possible violations of Federal Securities Laws was announced.

The investigation by a law firm concerns on whether Sunnyvale, California based Zoran Corporation or others have violated federal securities laws by issuing a series of statements regarding its business, its prospects and its operations that were materially false and misleading at the time they were made.
Zorans 12months Total Revenue decreased from $507.36million in 2007 to $357.34million in 2010. Its Net Income decreased from $66.19million in 2007 to a Net Loss of $47.64million in 2010.
Shares of Zoran Corporation (Public, NASDAQ:ZRAN) fell from over $26 during 2007 to as low as $5.20 per share during February 2009. During 2010 ZRAN shares fell from as high as $12.01 during March 2010 to $6.96 in November.
ZRAN shares reached $11.22 per share after on Sunday, Feb. 20, 2011, Zoran Corporation and CSR PLC had announced that they have entered into a merger agreement under which Zoran Corp. will merge with CSR PLC for an equity value equivalent to approximately US$679 million.

Then on May 9, 2011, Zoran Corporation reported its first quarter 2011 results and issued for the second quarter 2011 a guidance below Analysts' Estimates. According to the Associated Press, Zoran posted a first-quarter loss that was bigger than Wall Street had expected. CSR plc said it noted Zoran's latest guidance and is currently evaluating the implications of these disclosures.

Shares of Zoran Corp fell from $10.77 on April 25, respectively $9.59 on May 6 to $8.39 on May 9.