Tuesday, April 21, 2015

Shareholders Settlement with Omnivision

GlobeNewsWire: The Shareholders Foundation, Inc. reveals its version of the story in a class action lawsuit against OmniVision:

"The plaintiff alleged that OmniVision allegedly failed to disclose that it had lost its lucrative, high-profile, and exclusive contract with Apple Inc, that competition was eroding its "leadership position" in the smartphone industry, that delays in the development of its 8-megapixel product line were threatening its prospects, and that it lacked a reasonable basis for its statements about its bright prospects in the smartphone market.

On August 25, 2011, OmniVision announced its results for the fiscal first quarter of 2012 and provided guidance for the fiscal second quarter of 2012. OmniVision also disclosed delays in the production of its new 8-megapixel product line.

The plaintiff claimed that based on OmniVision's guidance, analysts recognized that OmniVision would not be the exclusive producer of camera components for Apple's iPhone 4S set for release in the fall of 2011. The plaintiff claimed that on that day the iPhone 4S became available for sale experts determined that based on a logo stamped on the inside of the camera sensor that Sony--and not OmniVision -- had supplied the CMOS sensor for the iPhone 4S.

After more than three years of litigation the settlement was announced in March 2015. The settlement provides a total recovery of $12.5 million in cash for certain OmniVision investors.

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