Oclaro shareholders receive pending settlement

A law firm recently announced the details to a pending securities class action settlement involving shareholders of an optical component manufacturer.

Law office Robbins Geller Rudman and Dowd noted that the settlement of the lawsuit against Oclaro, Inc., will be dealt with in the U.S. District Court for the Northern District of California. The hearing will take place on July 31, 2014, with Judge Edward Chen overseeing matters. The proposed settlement was initially agreed on April 30, 2014, and the initial class period included all shareholders who acquired stock in the company during the period between May 6, 2010, and Oct. 28, 2010.

If approved, the settlement would pay out $3.7 million to shareholders, and the court will determine if this amount is adequate. There will also be discussions as to whether or noted the lawsuit against Oclaro should be dismissed entirely, as well as if the plan of allocation to shareholders is sufficient. Attorneys' fees and other expenses will be determined during this process, among other issues.

For those shareholders who are members of the class, it is important that they receive the proof of claim and release form, as well as the notice of proposed settlement of class action. These items can be obtained by the claims administrator, who can be reached by mail or telephone. Further detail are available on the claims administrator's website.

The proof of claim and release form needs to be filed with the claims administrator by August 13, 2014, and those who fail to complete it will still be bound to the decision. All stockholders who want to be excluded from the case need to send their request in to the same party by July 7, 2014. Shareholders who take issue with the settlement proposal should file their paperwork with the clerk of the court on the same day.

Lawsuit filed in 2011
The securities class action lawsuit was initially filed in 2011 by law office Levi and Korsinsky, LLP. The allegations in the complaint revolved around the leaders of Oclaro potentially violating federal securities laws. This was due to the company releasing a number of statements that were either false or misleading regarding business practices and the financial standing of the company.

The company experienced a decline in its stock value due to the release of the information, which developed into the current litigation.