RADNOR, Pa., March 7 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court, District of New Jersey, on behalf of all purchasers of the securities of Opnext, Inc. ("Opnext" or the "Company") pursuant or traceable to the Company's February 14, 2007 Initial Public Offering (the "IPO" or the "Offering").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The Complaint charges Opnext and certain of its officers and directors with violations of the Securities Act of 1933. Opnext is a laser technology company formed out of Hitachi. The Company's products and services are used in communications networks, security systems, medical systems and consumer electronics.
The Complaint alleges that, in connection with the Company's IPO, defendants, in the Registration Statement, failed to disclose or indicate the following: (1) that the financial statements contained in the Registration Statement understated the Company's net loss for fiscal year ended March 31, 2006 by approximately $1 million; (2) that the Company overstated its net income for the quarter by $700,000, or nearly 27%; and (3) that the Company lacked adequate internal and financial controls.
On February 13, 2008, the Company shocked investors when it announced that it would be restating earnings for fiscal year ended March 31, 2006 and March 31, 2007, and for the three month periods ended December 31, 2006 and September 30, 2006, due to stark errors in its Registration Statement. As a result, previous figures for these periods could no longer be relied upon. Specifically, the Company stated that the its net income was overstated by $1.8 million for fiscal year ended March 31, 2007 and its net loss was understated by $1 million for fiscal year ended March 31, 2006. Moreover, net income was overstated by $0.7 million for the three-month period ended December 31, 2006 and understated by $0.1 million for the three-month period ended September 30, 2006. Finally, net loss was understated by $0.5 million for the three-month period ended June 30, 2006.
In response to this news, shares of the Company's stock declined $0.89 per share, or 16.06 percent, to close on February 13, 2008 at $4.65 per share, on unusually heavy trading volume. This closing price on Opnext represented a cumulative loss of $10.35, or 69 percent, of the value of the Company's shares at the time of its IPO just months prior.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/
If you are a member of the class described above, you may, not later than April 21, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at
