WAYNE, Pa., March 23, 2016 /PRNewswire/ -- Ryan & Maniskas, LLP that a class action lawsuit has been filed in United States District Court for the District of Oregon on behalf of purchasers of Mentor Graphics Corp. ("Mentor Graphics" or the "Company") (NASDAQ: MENT) common stock during the period between August 21, 2014 and November 19, 2015, inclusive (the "Class Period").
Mentor Graphics shareholders may, no later than May 17, 2016, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Mentor Graphics 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/ment.
Mentor Graphics develops, manufactures and distributes electronic design automation ("EDA") products – computer software and emulation hardware systems – worldwide, primarily to large companies in the communications, computer, consumer electronics, semiconductor, networking, multimedia, military and aerospace, and transportation industries.
The lawsuit 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 alleged 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.
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.
If you are a member of the class, you may, no later than May 17, 2016, 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 firstname.lastname@example.org or visit: www.rmclasslaw.com/cases/ment. 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.
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SOURCE Ryan & Maniskas, LLP