SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against Marvell Technology Group Ltd. and Certa...
September 21 2015 - 8:46PM
Pomerantz LLP announces that a class action lawsuit has been filed
against Marvell Technology Group Ltd. (“Marvell” or the “Company”)
(NASDAQ:MRVL) and certain of its officers. The class
action, filed in United States District Court, Southern District of
New York, and docketed under 15-cv-07304, is on behalf of a class
consisting of all persons or entities who purchased Marvell
securities between November 20, 2014 and September 10, 2015
inclusive (the “Class Period”). This class action seeks to
recover damages against Defendants for alleged violations of the
federal securities laws under the Securities Exchange Act of 1934
(the “Exchange Act”).
If you are a shareholder who purchased Marvell
securities during the Class Period, you have until November 10,
2015 to ask the Court to appoint you as Lead Plaintiff for the
class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert
S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or
888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail
are encouraged to include their mailing address, telephone number,
and number of shares purchased.
Marvell is a fabless semiconductor company, and
ships over one billion chips a year. The Company has design centers
located in China, Europe, Hong Kong, India, Israel, Japan,
Malaysia, Singapore, Taiwan and the U.S. Marvell’s purported
expertise in microprocessor architecture and digital signal
processing drives multiple platforms including high volume storage
solutions, mobile and wireless, networking, consumer and green
products.
The Complaint alleges that throughout the Class
Period, Defendants made false and/or misleading statements, as well
as failed to disclose material adverse facts about the Company’s
business, operations, and prospects. Specifically, Defendants made
false and/or misleading statements and/or failed to disclose that:
(1) the Company had engaged in inappropriate revenue recognition
practices; (2) Marvell's management permitted an inappropriate and
ineffective control environment; (3) as a result, the Company's key
accounting metrics were misstated; (4) and 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, the Company reported a
quarterly loss of $382.4 million for its fiscal second quarter,
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 Marvell’s key accounting practices including
its revenue recognition, litigation reserves, and internal
controls. Marvell revealed that it would be unable to timely file
its quarterly report due to the fact that its Audit Committee was
examining “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 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.
On this news, shares of Marvell fell $1.71 per
share, over 16%, to close on September 11, 2015 at $8.84 per share,
on unusually high volume.
The Pomerantz Firm, with offices in New York,
Chicago, Florida, and Los Angeles, is acknowledged as one of the
premier firms in the areas of corporate, securities, and antitrust
class litigation. Founded by the late Abraham L. Pomerantz, known
as the dean of the class action bar, the Pomerantz Firm pioneered
the field of securities class actions. Today, more than 70 years
later, the Pomerantz Firm continues in the tradition he
established, fighting for the rights of the victims of securities
fraud, breaches of fiduciary duty, and corporate misconduct. The
Firm has recovered numerous multimillion-dollar damages awards on
behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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