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) in the U.S. District Court for the District of Massachusetts. The complaint is brought on behalf of all purchasers of Acacia securities between August 11, 2016 and July 13, 2017, for alleged violations of the Securities Exchange Act of 1934 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 Lying About Declining Demand for Its Products
According to the complaint, Acacia represented in its public statements that the company was continuing to see strong global demand for its products and that its market opportunity was large and growing. The complaint alleges that Acacia failed to disclose that the company was actually experiencing declining demand for its products from important customers, that the company’s manufacturing quality control system was inadequate, and that its manufacturing process was causing some of the company’s units to be unsaleable. On October 27, 2016, ADVA Optical Networking and ZTE Corporation, two of Acacia’s largest customers, announced that it expected disappointing fourth quarter financial results. On May 31, 2017, Acacia disclosed that it identified a “quality issue” related to a problem with the circuit board cleaning process that affected a portion of its 1,300 AC400 units and 5,000 CFP units. The company’s stock fell over 55% as Acacia’s problems were revealed to the market, and closed at $39.00 per share on July 14, 2017.
Acacia Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.