Maynard manufacturer accused of misleading shareholders
File photo
The Maynard headquarters of Acacia Communications at Clock Tower Place.
A California law firm known for regularly filing lawsuits against publicly traded companies has filed a class-action complaint against a Maynard fiber optics manufacturer Acacia Communication, alleging the company lied to shareholders about the demand for its products.
The complaint, filed by law firm Robbins Arroyo LLP, alleges Acacia Communications didn’t disclose the company was actually experiencing declining demand for its products from important customers.
The firm alleges the company didn’t disclose that its manufacturing quality control system was inadequate and its manufacturing process was harming the saleability of the company’s products.
Acacia did not return requests for comment on Wednesday morning.
In May, the company disclosed it found a quality issues with a circuit-board cleaning process, impacting a portion of its units, according to the complaint.
The company’s stock fell over 55 percent as the problems were revealed, resulting it a $39 per share price at closing on July 14, the law firm said.
In its second-quarter financial statement released on Aug. 3, Acacia Communications reported revenue of $78.9 million, a year-over-year decrease of 32 percent.
In a statement with the financial disclosure, President and CEO Raj Shanmugaraj said the losses were a result of the quality issues identified at one of the company’s three contract manufacturers.
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