Retirement Board suing OmniVision
The Carbon County Retirement Board is entering into a class-action suit against OmniVision Inc., a leading developer of advanced digital imaging solutions.
During the monthly meeting of the county retirement board on Thursday, county solicitor Michael Ozalas outlined a communication he received from Murray Frank LLP of New York, a new firm hired by the county as one of its monitoring attorneys in respect to potential class action litigations. He said Murray Frank is recommending that the county become a representative plaintiff in a class-action suit against OmniVision.
Ozalas said he reviewed the letter of engagement that is required before litigation can proceed and recommended that the county enter into the agreement. The motion passed unanimously.
The class action lawsuit names OmniVision Inc. and some of its officers and directors as defendants for alleged violations of the federal securities laws.
According to a press release, released by the county on Thursday, "It is alleged that the defendants failed to properly disclose the loss of an exclusive contract with Apple for image sensors in the Apple iPhone 4s camera, among other things, which caused OmniVision's stock to trade to artificially high prices and then sharply decline, as the truth began to be revealed."
The action of the retirement board now permits Murray Frank to enter into litigation on behalf of the Carbon County Retirement Board, who are shareholders of OmniVision.
The press release continues, "As the OmniVision matter is in its early stages, the specific course of litigation as it pertains to the Carbon County Retirement Board is yet to be determined by the retirement board, Murray Frank and the court."