MRVL—MARVELL TECHNOLOGY GROUP INVESTORS ALERT: Lieff Cabraser Announces Securities Class Action Litigation
September 21 2015 - 4:23PM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
announces that class action litigation has been brought on behalf
of investors who purchased or otherwise acquired the securities of
Marvell Technology Group, Inc. (“Marvell” or the “Company”)
(NasdaqGS: MRVL) between November 20, 2014 through September 10,
2015, inclusive (the “Class Period”).
If you purchased or otherwise acquired Marvell securities during
the Class Period, you may move the Court for appointment as lead
plaintiff by no later than November 10, 2015. A lead plaintiff is a
representative party who acts on behalf of other class members in
directing the litigation. Your share of any recovery in the action
will not be affected by your decision of whether to seek
appointment as lead plaintiff. You may retain Lieff Cabraser, or
other attorneys, as your counsel in the actions.
Marvell investors who wish to learn more about the actions and
how to seek appointment as lead plaintiff should click here or
contact Sharon M. Lee of Lieff Cabraser toll-free at
1-800-541-7358.
Background on the Marvell Securities Class
Litigation
The actions charge Marvell and certain of its senior executives
with violations of Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934. Marvell, headquartered in Bermuda, is a
fabless semiconductor company that ships over one billion chips a
year.
The actions allege that during the Class Period, defendants made
false and/or misleading statements and/or failed to disclose: (1)
that Marvell had engaged in inappropriate revenue recognition
practices; (2) that the Company’s senior management encouraged a
closed and ineffective control environment; (3) that the Company’s
key accounting metrics were misstated; (4) that the Company lacked
adequate internal controls; (5) and that, as a result of the
foregoing, Defendants’ statements about Marvell’s business,
operations, and prospects, were false and misleading and/or lacked
a reasonable basis.
On September 11, 2015, Marvell reported a quarterly loss of
$382.4 million for its second quarter of fiscal 2016, whereas
analysts on average had predicted a quarterly profit of $11.9
million. The Company also announced an internal probe by its Audit
Committee into “certain revenue recognition issues in the second
quarter of fiscal 2016 and any associated issues with whether
senior management’s operating style during the period resulted in
an open flow of information and communication to set an appropriate
tone for an effective control environment.” According to the
Company, the Audit Committee’s investigation was focused on the
approximately 7-8% of revenue recognized in the second quarter of
fiscal 2016 that, based upon the original customer request date,
would have been received and earned in the third quarter of fiscal
2016 and is now no longer available for receipt in that quarter.
The Company explained that the increase was indicative of softening
demand for certain products, especially the storage end market. On
this news, the price of Marvell common stock fell $1.71 per share,
or 16.21%, from a closing price of $10.55 on September 10, 2015, to
close at $8.84 per share on September 11, 2015, on extraordinarily
high volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York, and Nashville, is a nationally recognized law
firm committed to advancing the rights of investors and promoting
corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of
the nation’s top plaintiffs’ law firms for twelve years. In
compiling the list, the National Law Journal examines recent
verdicts and settlements and looked for firms “representing the
best qualities of the plaintiffs' bar and that demonstrated unusual
dedication and creativity.” Best Lawyers and U.S. News have named
Lieff Cabraser as a “Law Firm of the Year” for each year the
publications have given this award to law firms, including in
2015.
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
www.lieffcabraser.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150921006387/en/
Source/Contact for Media Inquiries
Only:Lieff Cabraser Heimann & Bernstein, LLPSharon M.
Lee, 1-800-541-7358
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