NEW YORK, Oct. 27, 2015 /PRNewswire/ -- Bernstein Liebhard LLP today announced that only two weeks remain to file a motion for lead plaintiff in a class action pending in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased the securities of Marvell Technology Group, Ltd. ("Marvell" or the "Company") (NASDAQ: MRVL) from November 20, 2014 through September 10, 2015 (the "Class Period"). The action alleges violations of the Securities Exchange Act of 1934.
Marvell is a fabless semiconductor company, and ships over one billion chips a year. The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had engaged in inappropriate revenue recognition practices; (2) Marvell's management permitted an inappropriate and ineffective control environment; (3) the Company's key accounting metrics were misstated; and (4) Defendants' statements about Marvell's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On September 11, 2015, the Company reported a quarterly loss of $382.4 million for its fiscal second quarter, whereas analysts on average had predicted a quarterly profit of $11.9 million. The Company also announced an internal probe by its Audit Committee into Marvell's key accounting practices including its revenue recognition, litigation reserves, and internal controls. Marvell also revealed that it would be unable to timely file its quarterly report due to the fact that its Audit Committee was examining "certain revenue recognition issues in the second quarter of fiscal 2016 and any associated issues with whether senior management's operating style during the period resulted in an open flow of information and communication to set an appropriate tone for an effective control environment." On this news, shares of Marvell fell over 16%.
On Monday, October 26, 2015, after market close, the other shoe dropped. Marvell disclosed in a regulatory filing that PricewaterhouseCoopers had resigned as its auditor. Notably, PwC advised Marvell on its way out that it would need to expand its 2016 audit to areas including whether senior management set an appropriate tone for effective control management. After this news, Marvell stock fell approximately 15% from $9.45 per share to close at only $8.05 per share.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Marvell securities during the Class Period. If you invested in Marvell securities as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than November 10, 2015.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Marvell shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or [email protected].
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs' firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.
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SOURCE Bernstein Liebhard LLP