According to the law firm press release, Applied Optoelectronics, Inc. develops and manufactures advanced optical products which are the building blocks for broadband and fiber access networks primarily for Internet data center, cable television (CATV), and fiber-to-the-home (FTTH) networking end-market.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) a major customer was reducing its purchases of the Company's 40G receivers; (ii) the loss of this major customer's business would have a severe negative impact on the Company's financial performance; and (iii) as a result of the foregoing, Optoelectronics' public statements were materially false and misleading at all relevant times.