News

5 January 2009

 

Emcore shareholder files class action lawsuit

On 24 December, a shareholder of Emcore Corp, together with law firm Shareholders Foundation Inc of San Diego, CA, USA, filed a proposed class action lawsuit in the US District Court for the District of New Mexico on behalf of shareholders who purchased Emcore common stock from 12 June 2007 through 17 March 2008.

The lawsuit alleges that Emcore, which manufactures components and subsystems for the broadband, fiber-optic, and solar power markets, issued numerous materially false and misleading statements regarding its financial condition, business prospects, and revenue expectations during that period.

Specifically, the complaint alleges that Emcore’s public statements overstated the value of the order backlog in its terrestrial solar energy division, and that those mis-statements and omissions resulted in an artificially inflated price for Emcore’s common stock. Then on 18 March 2008, the price of the stock dropped by more than 23% on news that the firm’s largest customer, Green & Gold Energy Pty Ltd (GGE) of Glynde, Australia (which accounted for $78m of Emcore’s $86m order backlog in terrestrial solar technology) would not be able to afford those transactions due to changing market conditions.

The deadline for shareholders to go to the court as a plaintiff is 23 February 2009.

See related items:

Emcore revenues shrink 20%, driven by PV order push-outs

Emcore grows 70% year-on-year

Emcore wins orders worth $40m for CPV solar cells and receivers

Emcore wins CPV receiver orders worth $29m

Search: Emcore

Visit: www.emcore.com

Visit: www.ShareholdersFoundation.com