Pomerantz LLP announces that a class action lawsuit has been filed against Acacia Communications, Inc. ("Acacia" or the "Company") and certain of its officers. The class action, filed in United States District Court, District of Massachusetts, and docketed under 17-cv-11504, is on behalf of a class consisting of investors who purchased or otherwise acquired Acacia securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
Acacia designs, develops, manufactures, and markets communication equipment. The Company offers high-speed coherent optical interconnect products for cloud infrastructure operators and content and communication service providers. Acacia Communications serves customers worldwide.
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) the Company's manufacturing and quality control processes were deficient; (ii) the foregoing deficiencies were likely to disrupt the Company's manufacturing, thereby impacting the Company's revenues; and (iii) as a result of the foregoing, Acacia's public statements were materially false and misleading at all relevant times.
On May 31, 2017, Acacia issued a press release and filed a Current Report on Form 8-K with the Securities and Exchange Commission, advising investors that "the Company has identified a quality issue" affecting "a portion" of several thousand modules manufactured by one of Acacia's three contract manufacturers, citing as the "root cause of this quality issue . . . a circuit board cleaning process that has since been eliminated."
On July 14, 2017, Acacia issued a press release announcing the Company's preliminary financial and operating results for the quarter ended June 30, 2017. The Company reported profit and revenue that missed estimates, and revised its current-quarter guidance downward. Acacia stated that the Company's "second-quarter results were adversely affected by the quality issue identified at one of our three contract manufacturers that we announced on May 31."
On this news, Acacia's share price fell $2.62, or 6.30%, to close at $39.00 per share on July 14, 2017.