JDS Uniphase (JDSU)

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Connecticut officials lead class action against JDS


TORONTO, Sept 11 (Reuters) - The State Treasury and Attorney General of Connecticut are leading a class action lawsuit in the United States against fiber-optic components maker JDS Uniphase Corp <JDSU.O><JDU.TO> on behalf of thousands of shareholders.

The lawsuit, advertised in a Canadian newspaper on 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."

JDS Uniphase spokeswoman Lori Goulet 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, California, rather than keeping part of it in Ottawa, where it still has 580 employees, mostly in research and development.

"Some employees may have signed confidentiality agreements, but the court agreed with the Treasurer's Office and the Attorney General that employees cannot be prevented from telling what they know," the advertisement said.

JDS was one of the highest of the tech-stock high-flyers in the late 1990s. Its fiber optic equipment was in high demand and it went on an acquisition binge. Then in 2001, when the tech bubble burst, it announced a writedown of $44 billion, the second biggest writedown in corporate history.

Last month the company also announced the retirement of Jozef Straus, the company's Canadian founder. He was replaced by Kevin Kennedy.

($1=$1.37 Canadian)

09/11/03 12:57 ET