SAN DIEGO, March 21, 2016 /PRNewswire/ -- Johnson & Weaver, LLP announces that that a class action complaint was filed in the United States District Court for the District of Oregon on behalf of purchasers of Mentor Graphics Corporation (NASDAQ: MENT) securities during the period between August 21, 2014 and November 19, 2015 (the "Class Period").
If you are a Mentor Graphics shareholder and fit in one of the following categories, we encourage you to contact us:
- Shareholders buying Mentor Graphics shares during the Class Period with losses exceeding $25,000.
- All Shareholders, regardless of size, continuously holding shares before August 21, 2014. As a long term shareholder, you may have standing to hold Mentor Graphics harmless from the damage the officers and directors caused by making them personally responsible. You may also be able to assist in reforming the Company's corporate governance.
Mentor Graphics provides electronic design automation software and hardware solutions to automate the design, analysis, and testing of electro-mechanical systems, electronic hardware, and embedded systems software.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Mentor Graphics' business and prospects, including that: (a) Mentor Graphics' customers were delaying or declining extended license agreements or demanding price concessions from the Company due to the unprecedented level of mergers and acquisitions in 2015 and earlier; (b) demand for Mentor Graphics' emulation products had slowed as a result of the anticipated introduction of competitive products, notwithstanding defendants' assertions that it would be a long time before any competitor could release a competitive virtual emulation product; and (c) early customer contract renewals and related bookings had the effect of moving expected bookings and revenue from future periods to earlier periods, and were not, as defendants reported, a sign that demand was strong and increasing. As a result of these false and misleading statements and/or omissions, Mentor Graphics common stock traded at artificially inflated prices of over $27 per share during the Class Period.
Then on November 19, 2015, Mentor Graphics announced disappointing financial results for the third quarter of fiscal 2016 and substantially reduced its fourth quarter fiscal 2016 financial outlook, lowering its fourth quarter revenue forecast by $104 million. In addition, the Company stated that bookings for the three months ended October 31, 2015 had decreased by approximately 20% compared to the three months ended October 31, 2014, primarily due to a decrease in term license contract renewals. On this news, the price of Mentor Graphics stock fell 36%, closing at $17.85 per share, down from the previous day's close of $27.78 per share, on high trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Mentor Graphics securities during the Class Period (the "Class"). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from the March 18, 2016 class action complaint file date.
If you purchased Mentor Graphics shares during the Class Period, or if you are a long term shareholder and wish to discuss this action, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471. If you email, please include your phone number.
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.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
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SOURCE Johnson & Weaver, LLP