You probably don’t give too much thought to all the parts that make up your shiny new iPhone 4S, but there’s a whole Apple economy built in.
For example: that sharp new 8-megapixel camera that is a key feature of the new device is causing a lot of headaches for a company called OmniVision Technologies Inc. — there are already two law firms looking into what happened when Omnivision realized that it couldn’t supply as promised the camera for the iPhone 4S.
Faruqi & Faruqi is investigating potential wrongdoing – namely that someone at Omnivision violated federal securities laws by keeping mum that the company lost its image sensor contract with Apple and that delays in the development of its 8-megapixel product line were threatening the company’s future prospects. Harwood Feffer LLP has filed a filed a class action lawsuit along the same lines, alleging that the company violated the Securities Exchange Act by by concealing the loss of its exclusive contract with Apple.
Back in late August, OmniVision copped to production delays of its new 8-megapixel product that meant it wouldn’t be the exclusive producer of camera components for Apple’s new iPhone 4S. Once the news was out, OmniVision stock dropped $7.55 per share, over 30 percent.
The future looked anything but bright for OmniVision once it was clear that Sony was the supplier of the iPhone 4s camera, OmniVision stock tumbled another 9.4 percent.