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Cases

Opnext, Inc. IPO Class Action

Gardy & Notis, LLP has been appointed by the Court as lead counsel for investors suing Opnext, Inc. (NASDAQ: OPXT) in connection with Opnext's February 14, 2007 Initial Public Offering or "IPO." Defendants in the case include Opnext, its board of directors, its IPO underwriters (Goldman, Sachs & Co., JPMorgan Securities Inc., CIBC World Markets, Cowen and Company, Jeffries & Company), its outside auditors (Ernst & Young LLP) and its controlling shareholder at the time of the IPO (Hitachi, Ltd.).

Opnext completed its IPO at $15 per share pursuant to a Registration Statement and Prospectus that contained false and misleading statements and failed to disclose material adverse facts regarding the Company's financial statements and operations. Specifically, the IPO documents set forth the Company's financial statements for the quarter and nine months ended December 31, 2006 and for the fiscal year ended March 31, 2006. In terms of net income, the Registration Statement showed: a net loss of $30,474,000 for the fiscal year ended March 31, 2006; net income of $3,225,000 for the three-month period ended December 31, 2006; a net income of $1,174,000 for the three-month period ended September 30, 2006; and a net loss of $3,474,000 for the three-month period ended June 30, 2006.

On February 13, 2008, Opnext announced errors in the financial statements set forth in the IPO documents. Specifically, the financial statements used to sell the IPO (1) understated the Company's net loss for the fiscal year ended March 31, 2006 by approximately $1.0 million; (2) overstated its net income for the quarter ended December 31, 2006 by $700,000, or nearly 27%; and (3) failed to disclose the that the Company lacked adequate internal and financial controls. Opnext announced that such financial statements would be restated and could no longer be relied upon, essentially admitting that its financial reports in the IPO were worthless.

Opnext common stock fell to under $5 per share as a result of disclosure of the false financial statements, or under one-third of its IPO price.

The case is In re Opnext, Inc. Securities Litigation, before The Honorable Joel A. Pisano in the United States District Court for the District of New Jersey.

For more information regarding the lawsuit or to obtain a copy of the complaint or any Court filings, please contact us.

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