LOS ANGELES--(BUSINESS WIRE)--Lundin Law PC announces it is investigating claims against Tower Semiconductor Ltd. (“Tower” or the “Company”) (Nasdaq: TSEM) concerning possible violations of federal securities laws. The investigation is related to allegations that certain statements issued by Tower were false and misleading and/or failed to disclose material information regarding the Company’s financial performance.
To participate in this class action lawsuit, please contact Brian Lundin, Esquire, of Lundin Law PC, at 888-713-1033, or via email at email@example.com.
On January 14, 2016, Spruce Point Capital Management published a review on Tower called "Leaning Tower of Losses." Spruce Point Capital Management described the many issues with Tower and continued to describe, "Evidence Suggesting [a] Brazen Accounting Scheme to Forestall [a] Bankruptcy Threat." According to this report, "Tower may have heavily promoted [a joint venture deal with] Panasonic . . . to inflate its stock, and convert its Series F debt to equity to relieve its debt burden. We have evidence to suggest Tower inflated the value of the [joint venture's] assets from approx.. $100m to $300m in order to inflate a bargain purchase gain to bolster its equity. Furthermore, Tower has engaged in other questionable accounting maneuvers to give the appearance of strong Non-GAAP gross margins, profitability, and free cash flow such as: 1) Shifting COGS expenses to R&D and SG&A 2) Changing the presentation of capex from "gross" to "net"; 3) Extending the useful life of its assets to reducing depreciation expense; 4) Excluding depreciation and amortization to present Non-GAAP results (not industry standard); 5) Haircutting its convertible and bank debt by inappropriately interpreting the accounting guidance."
No class has been certified in the above action. Until a class is certified, you are not considered represented by an attorney. You may also choose to do nothing and be an absent class member.
Lundin Law PC was created by Brian Lundin, a securities litigator based in Los Angeles.
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