NEW YORK, Oct. 26, 2015 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Marvell Technology Group Ltd. ("Marvell" or the "Company")(NASDAQ: MRVL) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 15-cv-07304, is on behalf of a class consisting of all persons or entities who purchased Marvell securities between November 20, 2014 and September 10, 2015 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Marvell securities during the Class Period, you have until November 10, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Marvell is a fabless semiconductor company, and ships over one billion chips a year. The Company has design centers located in China, Europe, Hong Kong, India, Israel, Japan, Malaysia, Singapore, Taiwan and the U.S. Marvell's purported expertise in microprocessor architecture and digital signal processing drives multiple platforms including high volume storage solutions, mobile and wireless, networking, consumer and green products.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company had engaged in inappropriate revenue recognition practices; (2) Marvell's management permitted an inappropriate and ineffective control environment; (3) as a result, the Company's key accounting metrics were misstated; (4) and as a result of the foregoing, Defendants' statements about Marvell's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On September 11, 2015, the Company reported a quarterly loss of $382.4 million for its fiscal second quarter, whereas analysts on average had predicted a quarterly profit of $11.9 million. The Company also announced an internal probe by its Audit Committee into Marvell's key accounting practices including its revenue recognition, litigation reserves, and internal controls. Marvell revealed that it would be unable to timely file its quarterly report due to the fact that its Audit Committee was examining "certain revenue recognition issues in the second quarter of fiscal 2016 and any associated issues with whether senior management's operating style during the period resulted in an open flow of information and communication to set an appropriate tone for an effective control environment." According to the Company, the investigation was focused on the approximately 7-8% of revenue recognized in the second quarter of fiscal 2016 that, based upon the original customer request date, would have been received and earned in the third quarter of fiscal 2016 and is now no longer available for receipt in that quarter.
On this news, shares of Marvell fell $1.71 per share, over 16%, to close on September 11, 2015 at $8.84 per share, on unusually high volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP