Maxwell Technologies, Inc. Stock Declines Following Announcement that the Company Must Restate Previously Issued Financial Statements: Robbins Arroyo LLP Investigates on Behalf of Maxwell Shareholders
SAN DIEGO, March 18, 2013 /PRNewswire/ -- Shareholder rights firm Robbins Arroyo LLP is investigating whether officers and directors of Maxwell Technologies, Inc. (NASDAQ: MXWL) breached their fiduciary duties to shareholders in making materially false and misleading statements regarding the company's business, operational, and compliance policies.
Robbins Arroyo LLP Investigates Potential Improper Public Statements After Maxwell Reports It Will Have to Restate Previously Filed Financial Statements for 2011 and Most of 2012
After market closed on March 7, 2013, Maxwell issued a press release announcing that it would be restating previously issued financial statements for 2011 and most of 2012 due to errors related to the timing of recognition of revenue from sales to certain distributors, and that those financial statements should not be relied upon.
In light of this news, Robbins Arroyo is investigating whether Maxwell's financial reporting for fiscal years 2011 and 2012 may have been false and misleading because it disregarded several factors, including that: (i) Maxwell overstated its revenues and earnings in 2011 and 2012 in violation of Generally Accepted Accounting Principles; (ii) Maxwell had reported revenues prior to the time the sales price was fixed and/or collection was reasonably assured; and (iii) Maxwell's internal accounting controls were deficient and permitted the premature recognition of revenue, leading to material misstated financial results.
Robbins Arroyo LLP highlights that Maxwell shareholders have the option to pursue a shareholder derivative action through which shareholders aim to hold insider wrongdoers accountable for their actions, prevent future misconduct, and bring long-term value back to the company. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/maxwell-technologies-inc/
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SOURCE Robbins Arroyo LLP