SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of purchasers of Montage Technology Group Limited (Nasdaq: MONT) who purchased the Company’s publicly traded securities between September 26, 2013 and February 6, 2014, inclusive (the “Class Period”).
Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Plaintiff seeks to recover damages on behalf of all purchasers of Montage’s publicly traded securities during the Class Period. If you wish to serve as lead plaintiff, you must move the Court by April 8, 2014. If you would like to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471.
The complaint charges Montage and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Montage is a global fabless provider of analog and mixed-signal semiconductor solutions addressing the home entertainment and cloud computing markets.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s operations, its business, and its financial results. As a result of defendants’ alleged false statements, Montage’s securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $25.63 per share on January 17, 2014. The complaint alleges that while Montage’s stock price was artificially inflated, the Company was able to complete a follow-on public offering of 5,350,000 ordinary shares at a price of $21 per share.
On February 6, 2014, Gravity Research Group published a report contending that Montage greatly exaggerated its true financial performance, asserting that one of Montage’s largest distributors, LQW Technology Company Limited, was a shell company used to fabricate Montage’s financial results. Additionally, the report stated that the Company’s largest “end” customer was an undisclosed related party. As a result of this news, Montage’s stock price fell to as low as $14.51 per share before closing at $17.45 per share on February 6, 2014, a one day decline of nearly 18% and a decline of nearly 32% from its Class Period high.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm with offices in New York, New York and San Diego, California. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.