NEW YORK, May 10, 2013 /PRNewswire/ -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Maxwell Technologies, Inc. ("Maxwell Technologies" or the "Company")(NASDAQ: MXWL) and certain of its officers. The class action filed in United States District Court, Southern District of California, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Maxwell Technologies between April 28, 2011 and March 7, 2013, both dates inclusive of (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Maxwell Technologies securities during the Class Period, you have until May 13, 2013 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, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Maxwell develops, manufactures and markets energy storage and power delivery products for transportation, industrial, telecommunications and other applications and microelectronic products for space and satellite applications.
The Complaint alleges that throughout the Class Period, Defendants issued a series of materially false and misleading statements regarding the Company's revenues and operations. These false and misleading statements included, overstating revenues and earnings for the years 2011 and 2012, recognizing revenue before a sales price was fixed or collection reasonably assured and not maintaining adequate internal accounting controls.
On March 7, 2013, after the market closed, Maxwell issued a press release disclosing that the Company would be restating previously issued financial statements for 2011 and most of 2012 due to errors related to the timing of recognition of revenue from sales to certain distributors. Specifically, the Company announced: (a) Maxwell had overstated its revenues and earnings in 2011 and 2012 and the financial statements should no longer be relied upon; (b) Maxwell had reported revenues prior to the time the sales price was fixed and/or collection was reasonably assured; (c) Maxwell's internal accounting controls were deficient and permitted the premature recognition of revenue, leading to materially misstated financial results; and (d) as a result of the above, the Company's financial statements may be materially false and misleading at all relevant times.
The Company further disclosed that the financial statements should no longer be relied upon, and that as a result of the investigation, certain employees were terminated and Maxwell's Sr. Vice President of Sales and Marketing resigned. On this news, the Company's stock price dropped $1.01 per share on March 8, 2013 to close at $8.10 per share, a one-day decline of 11% on volume of 1.7 million shares. The stock price has continued on a steady decline, over the past four weeks, losing $2.83 per share or 35% to close on April 10, 2013 at $5.27.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, 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.
SOURCE Pomerantz Grossman Hufford Dahlstrom & Gross LLP