32.  The market for Applied Optoelectronics’ securities was open, well-developed and  efficient at all relevant times.  As a result of these materially false and/or misleading statements,  and/or failures to disclose, Applied Optoelectronics’ securities traded at artificially inflated prices  during the Class Period.  Plaintiff and other members of the Class purchased or otherwise acquired  Applied Optoelectronics’ securities relying upon the integrity of the market price of the  Company’s securities and market information relating to Applied Optoelectronics, and have been  damaged thereby.   33.  During the Class Period, Defendants materially misled the investing public, thereby  inflating the price of Applied Optoelectronics’ securities, by publicly issuing false and/or  misleading statements and/or omitting to disclose material facts necessary to make Defendants’  statements, as set forth herein, not false and/or misleading.  The statements and omissions were  materially false and/or misleading because they failed to disclose material adverse information  and/or misrepresented the truth about Applied Optoelectronics’ business, operations, and prospects  as alleged herein.   37.  As alleged herein, Defendants acted with scienter since Defendants knew that the  public documents and statements issued or disseminated in the name of the Company were  materially false and/or misleading; knew that such statements or documents would be issued or  disseminated to the investing public; and knowingly and substantially participated or acquiesced  in the issuance or dissemination of such statements or documents as primary violations of the  federal securities laws.  As set forth elsewhere herein in detail, the Individual Defendants, by virtue  of their receipt of information reflecting the true facts regarding Applied Optoelectronics, their  control over, and/or receipt and/or modification of Applied Optoelectronics’ allegedly materially  misleading misstatements and/or their associations with the Company which made them privy to  confidential proprietary information concerning Applied Optoelectronics, participated in the  fraudulent scheme alleged herein.   44.  Plaintiff repeats and re-alleges each and every allegation contained above as if fully  set forth herein.    45.  During the Class Period, Defendants carried out a plan, scheme and course of  conduct which was intended to and, throughout the Class Period, did: (i) deceive the investing  public, including Plaintiff and other Class members, as alleged herein; and (ii) cause Plaintiff and  other members of the Class to purchase Applied Optoelectronics’ securities at artificially inflated  prices.  In furtherance of this unlawful scheme, plan and course of conduct, Defendants, and each  defendant, took the actions set forth herein.   46.  Defendants (i) employed devices, schemes, and artifices to defraud; (ii) made  untrue statements of material fact and/or omitted to state material facts necessary to make the  statements not misleading; and (iii) engaged in acts, practices, and a course of business which  operated as a fraud and deceit upon the purchasers of the Company’s securities in an effort to  maintain artificially high market prices for Applied Optoelectronics’ securities in violation of  Section 10(b) of the Exchange Act and Rule 10b-5.  All Defendants are sued either as primary  participants in the wrongful and illegal conduct charged herein or as controlling persons as alleged  below.     47.  Defendants, individually and in concert, directly and indirectly, by the use, means  or instrumentalities of interstate commerce and/or of the mails, engaged and participated in a  continuous course of conduct to conceal adverse material information about Applied  Optoelectronics’ financial well-being and prospects, as specified herein.     55.  Plaintiff repeats and re-alleges each and every allegation contained above as if fully  set forth herein.    56.  Individual Defendants acted as controlling persons of Applied Optoelectronics  within the meaning of Section 20(a) of the Exchange Act as alleged herein. By virtue of their high- level positions and their ownership and contractual rights, participation in, and/or awareness of the  Company’s operations and intimate knowledge of the false financial statements filed by the  Company with the SEC and disseminated to the investing public, Individual Defendants had the  power to influence and control and did influence and control, directly or indirectly, the decision- making of the Company, including the content and dissemination of the various statements which  Plaintiff contends are false and misleading. Individual Defendants were provided with or had  unlimited access to copies of the Company’s reports, press releases, public filings, and other  statements alleged by Plaintiff to be misleading prior to and/or shortly after these statements were  issued and had the ability to prevent the issuance of the statements or cause the statements to be  corrected.    57.  In particular, Individual Defendants had direct and supervisory involvement in the  day-to-day operations of the Company and, therefore, had the power to control or influence the  particular transactions giving rise to the securities violations as alleged herein, and exercised the  same.   Background   Violation of Section 20(a) of The Exchange Act   Against the Individual Defendants   Violation of Section 10(b) of The Exchange Act and   Rule 10b-5 Promulgated Thereunder   Against All Defendants  