NEW YORK, March 30, 2016 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Mentor Graphics Corp. ("Mentor Graphics" or the "Company") (NASDAQ: MENT) of the May 17, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Oregon on behalf of all those who purchased or otherwise acquired the common stock of Mentor Graphics between August 21, 2014 and November 19, 2015 (the "Class Period"). The case, Haroutunian v. Mentor Graphics Corp., et al., No. 16-cv-00470 was filed on March 18, 2016, and has been assigned to Judge Anna J. Brown.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making statements that were materially false and misleading, as well as failing to disclose the following facts: (1) Mentor Graphics' customers had announced and completed an unprecedented number of mergers and acquisitions in 2015 and earlier, resulting in the delaying or declining of purchases of the Company's products, or demanding price concessions from the Company; (2) demand for Mentor Graphics' emulation products had declined as a result of the introduction of competitive products, notwithstanding Mentor Graphics' assurances that it would be a "long time" before any competitor could release a significantly competitive virtual emulation product; (3) early contract renewals and related bookings that had boosted financial results had the effect of moving expected bookings and revenue from future periods (in particular, the second half of FY16) to earlier periods (the first half of FY16), and were not a sign that demand was robust and increasing, nor was Mentor Graphics "booked to capacity" so as to ensure a steady stream of revenue; (4) as a result, Mentor Graphics lacked a reasonable basis for their positive statements about the Company, its earnings and prospects.
Specifically, the lawsuit alleges that on November 19, 2015, Mentor Graphics announced disappointing financial results for its third quarter of FY16 and substantially reducing its fourth quarter FY16 financial outlook by $104 million to $336 million – instead of $440 million in revenue. Following the publication of the Company's financial results, the Wall Street Journal reported on November 19, 2015, in an article entitled "Mentor Graphics Shares Plunge Amid Lower Forecast, Quarterly Profit," that the Company's stock price was declining because of the poor third quarter FY16 financial results, lowered guidance and what that revealed about the Company's performance and prospects.
As a result, share price fell $9.93 per share the next day to close at $17.85 per share, a 35.75% drop, on November 20, 2015.
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If you invested in Mentor Graphics common stock between August 21, 2014 and November 19, 2015 and would like to discuss your legal rights, visit www.faruqilaw.com/MENT. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Mentor Graphics' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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