NEW YORK, March 16, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, notifies investors of class action against Tower Semiconductor Ltd. ("Tower" or "the Company") (Nasdaq: TSEM). The class action has been filed in United States District Court, Central District of California on behalf of a class consisting of all persons or entities who purchased Tower securities during the period between April 30, 2012 and January 14, 2016 inclusive (the "Class Period").
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
Tower Semiconductor is an independent specialty foundry that manufactures semiconductors and operates a semiconductor fabrication facility in Newport Beach, California.
The Complaint alleges that throughout the Class Period, Defendants issued false and misleading statements to investors and/or failed to disclose that: (1) the value of net tangible assets of the procurement of a fabrication facility from Micron Technology Inc. was unnaturally inflated; (2) the value of net tangible assets of the acquisition of 51% of TowerJazz Panasonic Semiconductor Co., Ltd. from Panasonic Corporation was artificially inflated; (3) Tower Semiconductor's Series F Debentures were erroneously accounted and minimize debt; and (4) consequently, Defendants' statements about Tower's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On January 14, 2016, Spruce Point Capital Management published a review on Tower Semiconductor 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."
Directly following this news, Tower dropped $1.23 per share or roughly 10, to close at $11.24 per share on January 14, 2016.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action, visit the firm's website: http://www.bgandg.com/#!tsem/coaei.. To discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Tower you have until March 22, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | email@example.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/deadline-alert-bronstein-gewirtz--grossman-llc-notifies-investors-of-class-action-against-tower-semiconductor-ltd-tsem-and-lead-plaintiff-deadline-march-22-2016-300234390.html
SOURCE Bronstein, Gewirtz & Grossman, LLC