LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Silicon Motion Technology Corporation (“Silicon Motion” or the “Company”) (NASDAQ: SIMO) American Depositary Shares (“ADSs”) between June 6, 2023 and July 26, 2023, inclusive (the “Class Period”). Silicon Motion investors have until October 30, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On July 26, 2023, MaxLinear announced that it was terminating a merger agreement with Silicon Motion less than a day after Chinese regulatory authorities had approved the combination.
On this news, Silicon Motion’s stock price fell $12.84, or 19.6%, to close at $52.51 per ADS on July 27, 2023, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) there had been a material downturn in the semiconductor industry and rising interest rates; (2) MaxLinear had determined to unilaterally terminate the Merger in the event the Merger was approved by Chinese regulatory authorities; (3) MaxLinear intended to argue that certain conditions in Article 6 of the Merger Agreement had not been satisfied as required by May 5, 2023 (i.e., before the Class Period) as a basis to terminate the Merger; and (4) as a result of the foregoing, defendants had materially misrepresented the viability of the Merger, the purported benefits of the Merger, and the likelihood that the Merger would be consummated; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Silicon Motion ADSs during the Class Period, you may move the Court no later than October 30, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Silicon Motion ADSs, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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