BERKELEY, Calif.--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP is investigating MagnaChip Semiconductor Corporation (NYSE: MX) (“MagnaChip”) for securities fraud and advises investors of the class-action lead plaintiff deadline on May 12, 2014. Investors who have suffered financial losses can contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000, emailing MX@hbsslaw.com or by visiting http://hb-securities.com/investigations/MagnaChip.
The securities fraud class-action lawsuit, filed on March 12, 2014, is on behalf of investors who purchased stock between Jan. 30, 2013 and March 11, 2014 (the “Class Period”), and alleges that defendants failed to disclose its lack of control over financial reporting and also improperly recognized its revenues.
On Jan. 27, 2014, after the close of trading, MagnaChip announced that it would postpone its fourth quarter 2013 earnings release and investor conference call, previously scheduled for Jan. 28, 2014, to provide additional time for the company to complete its review of its financial results for the fourth quarter and full year 2013. Following this news, MagnaChip shares declined $1.41 per share, or more than eight percent, to close at $16.16 per share on Jan. 28, 2014.
On March 11, 2014, the company issued a press release announcing the need to restate its prior financial statements, as well as identifying material weaknesses in its internal controls. Following this news, MagnaChip’s shares fell as much as $1.83, or about 13 percent, to as low as $12.50 on March 11, 2014.
“It appears that defendants might have been involved in keeping the stock at artificially inflated prices,” said Mr. Kathrein. “If so, defendants could be guilty of serious securities fraud.”
The deadline to file for lead plaintiff in a recently filed securities fraud class action is May 12, 2014.
Persons with non-public information regarding MagnaChip should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hb-securities.com. Read the Firm’s Securities Newsletter at http://www.hb-securities.com/newsletter. The firm’s blog is located at www.meaningfuldisclosure.com.
