TORONTO, Sept. 15 -- The State Treasury and Attorney General of Connecticut are leading a class action lawsuit in the US against fiber optic components maker JDS Uniphase Corp. on behalf of thousands of shareholders.
The lawsuit, advertised in a Canadian newspaper last Wednesday, alleges that JDS insiders knew there were problems with the company, kept them a secret and personally profited by more than $3 billion, "and then let average investors lose millions when word got out and the stock collapsed," according to Reuters.
JDS Uniphase spokeswoman Lori Goulet told Reuters the company rejected the allegations. "(They) are without merit and we will vigorously defend the company in this matter," she said.
In the advertisement in the Ottawa Citizen newspaper, the Attorney General of Connecticut urged Canadian employees of the company to disclose what they know about the company even if they've signed confidentiality agreements.
Last month JDS consolidated its head office in San Jose, Calif., rather than keeping part of it in Ottawa, where it still has 580 employees, mostly in research and development. Last month the company also announced the retirement of Jozef Straus, the company's Canadian founder. He was replaced by Kevin Kennedy.
For more information, visit: www.jdsu.com