SAN DIEGO and LUXEMBOURG, April 23, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of MagnaChip Semiconductor Corporation (NYSE: MX) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between February 1, 2012 and February 12, 2015. MagnaChip designs and manufactures analog mixed signal semiconductor products for consumer, computer, and communication applications.
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MagnaChip Misrepresents Its Business Practices
According to the complaint, defendants made materially false and misleading statements regarding the company's business, prospects, operations, and financial results and failed to disclose the inadequacy of its internal controls and procedures over financial reporting. Specifically, the complaint alleges that MagnaChip failed to disclose that it was improperly recognizing revenues, resulting in an overstatement of revenues and earnings in 2011, 2012, and the first nine months of 2013.
When MagnaChip finally disclosed the full extent of its restatements on February 12, 2015, the company revealed the reversal of $142 million worth of earnings, eliminating 55% of its reported profits for those periods. On this news, MagnaChip shares declined $7.50 per share, or nearly 50%, to close at $7.52 per share on February 13, 2015.
MagnaChip Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in 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.
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SOURCE Robbins Arroyo LLP