SAN DIEGO, May 27, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/rubicon/) filed the only class action lawsuit pending in the United States District Court for the Northern District of Illinois on behalf of purchasers of Rubicon Technology, Inc. ("Rubicon") (NASDAQ:RBCN) common stock in the Company's public offering on or about March 19, 2014 (the "Offering"). The case, filed on April 30, 2015, has been assigned to Judge Manish S. Shah.
If you purchased Rubicon common stock in the Offering and suffered losses in connection therewith, you may qualify to serve as a lead plaintiff in this action. The court-appointed lead plaintiff is generally the investor with the largest financial interest in the relief sought by the class that is adequate and typical of other 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. The deadline to file lead plaintiff motions in this case is June 29, 2015. To inquire about serving as lead plaintiff or discuss this action or notice, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [email protected]. A copy of the complaint and additional information about the case are available online at http://www.rgrdlaw.com/cases/rubicon/.
On December 6, 2013, Rubicon filed an amended shelf registration statement (the "Form S-3A") with the SEC which included a form of prospectus (the "Prospectus") authorizing the Company and to-be-identified "selling stockholders" to sell up to $100 million worth of shares of Rubicon common stock, at any time, in one or more offerings. Thereafter, on March 19, 2014, Rubicon filed a prospectus supplement (the "Prospectus Supplement") with the SEC offering to register 2.5 million shares of Rubicon common stock (not including an overallotment of 375,000 shares) for sale at $13.00 per share by selling shareholders Cross Atlantic Funds, a group of funds controlled by one of Rubicon's directors. The Offering was sold pursuant to the Form S-3A, the Prospectus and the Prospectus Supplement (jointly referred to herein as the "Registration Statement").
The complaint Robbins Geller filed on behalf of investors charges Rubicon, certain of its officers and directors and the underwriters of the Offering with violations of the Securities Act of 1933 based upon materially false and misleading statements and omissions in the Registration Statement, which was prepared in violation of SEC rules and regulations. Specifically, the Registration Statement negligently failed to disclose material trends, events and uncertainties known to management that were reasonably expected to have a material impact on the Company's income from continuing operations, including the reversal of its trend of shrinking losses, higher-than-expected development costs and inventory write-offs due to Rubicon's inability to sell certain of its wafers during its 2014 first quarter at prices greater than their cost to manufacture, causing such inventory to be impaired under applicable accounting rules and regulations.
On May 1, 2014, the Company issued a press release and hosted a conference call regarding its 2014 first quarter in which the Company reported disappointing financial results and revealed, among other things, that the trend of shrinking gross losses, operating losses, and losses per share from the prior quarters had dramatically reversed in the first quarter of 2014, causing substantial increases in gross losses of $7.5 million, losses from operations of $10.9 million, and losses per share of $0.43. Thereafter, Rubicon common stock declined by approximately 16%. The stock is currently trading below $3.00 per share, more than 75% below the Offering price.
The plaintiff, represented by Robbins Geller, seeks to recover damages on behalf of all purchasers of Rubicon common stock in the Offering on or about March 19, 2014.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked number one in the number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com for more information.