Applied Micro hit with shareholder suit
San Diego-based law firm Finkelstein & Krinsk announced Tuesday it filed a shareholder lawsuit against Applied Micro Circuits, a San Diego-based company that produces silicon for optical markets. Applied Micro's stock traded midday Tuesday at $24.56, down 67.3 percent since the beginning of the year and down 77.6 percent since its 52-week high of $109.75. The lawsuit alleges that certain Applied Micro managers "participated in a scheme to artificially inflate the company's stock" from Nov. 30 to Feb. 5, when executives misrepresented sales and prospects for growth and cashed in stock worth $100 million. It's the latest in a string of lawsuits against companies such as Cisco Systems, Amazon.com and i2 Technologies, whose slumping shares have raised hackles of angry investors and lawyers.
The lawsuit alleges that certain Applied Micro managers "participated in a scheme to artificially inflate the company's stock" from Nov. 30 to Feb. 5, when executives misrepresented sales and prospects for growth and cashed in stock worth $100 million. It's the latest in a string of lawsuits against companies such as Cisco Systems, Amazon.com and i2 Technologies, whose slumping shares have raised hackles of angry investors and lawyers.