WAYNE, Pa., April 24, 2015 /PRNewswire/ -- Ryan & Maniskas, LLP that a class action lawsuit has been filed in United States District Court for the Northern District of California on behalf of purchasers of MagnaChip Semiconductor Corporation ("MagnaChip" or the "Company") (NYSE: MX) publicly traded securities during the period between February 1, 2012 and February 12, 2015 (the "Class Period"), including purchasers of MagnaChip common stock pursuant and/or traceable to MagnaChip's February 6, 2013 follow-on public stock offering.
MagnaChip shareholders may, no later than June 22, 2015, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of MagnaChip and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/mx.
The complaint charges MagnaChip and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MagnaChip is a South Korea-based designer and manufacturer of analog and mixed-signal semiconductor products mainly for high-volume consumer, computer and communication applications, which includes smart phones.
The complaint alleges that during the Class Period, defendants issued 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 Company failed to disclose that it was improperly recognizing revenues, resulting in its prior financial statements overstating its revenues and earnings in 2011, 2012, and the first nine months of 2013. As a result of defendants' false statements, MagnaChip securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $23.57 per share on October 21, 2013, and MagnaChip's controlling shareholder, Avenue Capital Management II, L.P., was able to sell more than 16.1 million MagnaChip shares in secondary stock offerings and on the open market during the Class Period at fraud-inflated prices, receiving $232.675 million in gross proceeds.
Following a January 2014 disclosure that it could not timely file its annual financial report for fiscal 2013, on March 11, 2014, MagnaChip announced that it would be restating its 2011, 2012 and 2013 financial results after concluding that it had "incorrectly recognized revenue on certain transactions," stating it "expect[ed] that the primary impact of the correction of prior revenue recognition errors [would] be to recognize revenue on certain transactions in the periods in which the distributor ship[ped] the products to the end customer rather than the periods in which the products [were] shipped to distributors." Then on February 12, 2015, after the market closed, MagnaChip filed its Annual Report on Form 10-K with the SEC for the fiscal year ended December 31, 2013, restating its financial results for fiscal years 2011, 2012, and the first three quarters of 2013, resulting in a total reversal of earnings by $142 million, wiping out 55% of its reported profits for those periods. The complaint alleges that as a result of this news, MagnaChip's shares plummeted $7.50 per share to close at $7.52 per share on February 13, 2015, a one-day decline of nearly 50%.
If you are a member of the class, you may, no later than June 22, 2015, request that the Court appoint you as lead plaintiff of the class. 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 Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at [email protected] or visit: www.rmclasslaw.com/cases/mx. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.