A second lawsuit was filed by an investor in NASDAQ: OVTI against directors and officers of OmniVision Technologies, Inc over alleged breaches of fiduciary duties and other current NASDAQ:OVTI stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/04/2012 -- Another current investor in NASDAQ: OVTI shares has filed a second lawsuit against certain members of the board of directors and officers of OmniVision Technologies, Inc after losing its contract as exclusive supplier of camera sensors for Apple's iPhone, iPad and iTouch due to delayed development of a new product.
Investors who purchased OmniVision Technologies, Inc. (NASDAQ: OVTI) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges that certain directors and officers of OmniVision Technologies breached their fiduciary duties in connection with an alleged supply contract with Apple for its iPhone 4S camera senor.
The plaintiff alleges that defendants allegedly had prior knowledge that OmniVision's new product, an 8 megapixel sensor announced in February 2011, would not be delivered on time and that company board members were aware of this even as they were marketing it and creating a media buzz which increased the demand for shares.
The plaintiff alleges that OmniVision Technologies’ management continued to issue press releases and make public statements regarding OmniVision Technologies’ expected positive outlook and high earning potential.
In May OmniVision Technologies introduced a slim version of its 5 mega pixel sensor. Then in August 2011, OmniVision Technologies announced its results for the fiscal first quarter of 2012 and provided guidance for the fiscal second quarter of 2012. OmniVision Technologies Inc also disclosed delays in the production of its new 8-megapixel product line.
The plaintiff claims that based on OmniVision Technologies' disappointing guidance, analysts recognized that OmniVision Technologies would not be the exclusive producer of camera components for Apple's new, fifth generation iPhone--the iPhone 4S--set for release in the fall of 2011.
NASDAQ: OVTI shares fell from as high as $36.19 per share in April 2011 to as low as $12.71 per share on October 3, 2011. OVTI shares recovered slightly and traded on October 14 at $18.73 per share.
The plaintiff alleges that certain insiders were aware of OmniVision Technologies' problems and began to sell off their shares at a profit of $18 million.
Then on the iPhone 4S became available for sale in October 2011. The plaintiff claims that based on a logo stamped on the inside of the camera sensor, experts determined that Sony--and not Omni Vision Technologies --had supplied the CMOS sensor for the iPhone 4S.
NASDAQ OVTI stocks fell from almost $19 per share on Oct. 14 to as low as $14.80 on October 18, 2011. In fact, NASDAQ:OVTI shares fell in November to as low as $10.41 and traded in the end of December as low as $11.00 per share. Since then NASDAQ:OVTI shares regained some value and closed onn March 30, 2012, at $20.00 per share, still significantly less than in April 2011.
Those who are current long term investors in OmniVision Technologies, Inc. (NASDAQ:OVTI) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego