BERKELEY, Calif., Nov. 11, 2011 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP today announced that its investigation of OmniVision (Nasdaq: OVTI) on behalf of investors is deepening in light of OmniVision's announcement on Nov. 7 that it was once again revising guidance lower, taking the numbers for the next quarter down approximately an additional 20 percent ---and simply referring to "unexpected cutback in orders for certain key projects."
This follows the revelation that management sold over $12 million in OVTI stock at a time when it was experiencing production delays and the company was losing its exclusive contract with Apple (Nasdaq: AAPL) to provide imaging sensors for the Apple iPhone.
A class-action lawsuit on behalf of investors has been filed in the United States District Court for the Northern District of California.
Investors and others who purchased OmniVision stock between August 27, 2010, and October 13, 2010 (the "class period"), and have suffered losses greater than $100,000 are encouraged to contact the firm. Hagens Berman partner Reed R. Kathrein, who manages the firm's Berkeley, California office is leading the investigation. He can be reached at (510) 725-3000 or via email at OVTI@hbsslaw.com.
Investors can also learn more about this investigation at www.hbsslaw.com/OVTI. The deadline to move the court for lead plaintiff in the class-action lawsuit filed on behalf of investors is December 27, 2011.
OmniVision produces image sensors that are commonly used in digital cameras, including Apple iPhones.
On August 25, 2011, the company announced financial results below analyst expectations. Analysts theorized that OmniVision had lost its exclusive contract with Apple and would not be the sole provider of image sensors in the iPhone 4S. Following the release of OmniVision's financial results, the stock price dropped by $7.55 to $17.27, a loss of more than 30 percent.
On October 14, 2011, the iPhone 4S was released and, according to the complaint, experts determined that Sony had produced the sensor inside, not OmniVision. The company's stock price fell 9 percent on the news.
"The smoke is thickening around OmniVision. We are trying to determine when OmniVision discovered its production problems and learned it would not be providing the imaging sensors in the iPhone 4S," said Mr. Kathrein. "If the company knew of these problems when management was dumping stock, it was obligated to report the news to investors."
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. Founded in 1993, the firm's mission is to represent plaintiffs in class actions and multi-party, large-scale litigation that has the potential to protect the rights of investors, consumers, workers and the environment. The National Law Journal has rated Hagens Berman as one of the top plaintiffs' firms in the country four out of the last five years. More information about the firm is available at www.hbsslaw.com, and the firm's securities law blog is at www.meaningfuldisclosure.com.
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SOURCE Hagens Berman LLP