Robbins LLP: Acacia Communications, Inc. (ACIA) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Acacia Communications, Inc. (NasdaqGS: ACIA). The complaint is brought on behalf of all purchasers of Acacia securities pursuant to the company’s secondary public offering on October 7, 2016 (the “Secondary Offering”), for alleged violations of the Securities Act of 1933 by Acacia’s officers and directors. Acacia develops, manufactures, and sells high-speed coherent optical interconnect products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region.
Acacia Accused of Concealing Truth Behind Declining Demand for Its Products
According to the complaint, Acacia held the Secondary Offering on October 7, 2016, selling 1,210,302 shares of common stock and receiving more than $121 million in gross proceeds. Acacia’s offering documents emphasized the purported ongoing strong demand for Acacia’s products and projected optimistic financial guidance for the company. Acacia allegedly neglected to mention that its top two customers, who were collectively responsible for 62% of Acacia’s sales, had experienced operational and sales problems that were limiting their demand for Acacia’s products, and that one of Acacia’s largest customers in Germany was having difficulty rolling out its own cloud-based technology using Acacia’s products. Further, quality issues allegedly affected a portion of approximately 6,300 of Acacia’s units. Acacia subsequently announced disappointing financial results for 2Q17 and slashed its guidance for 3Q17.
Acacia Shareholders Have Legal Options
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