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 firstname.lastname@example.org.
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.
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