NEW YORK, Jan. 14, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of Tower Semiconductor Ltd. ("Tower" or "the Company") (Nasdaq: TSEM). Such investors are advised to contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz at email@example.com or 212-697-6484.
This investigation concerns whether Tower and certain of its officers and/or directors have violated the Federal Securities Laws under the Securities Exchange Act of 1934 (the "Exchange Act").
On January 14, 2016, Spruce Point Capital Management published a review on Tower Semiconductor called "Leaning Tower of Losses." Spruce Point Capital Management described the many issues with Tower and continued to describe, "Evidence Suggesting [a] Brazen Accounting Scheme to Forestall [a] Bankruptcy Threat." According to this report, "Tower may have heavily promoted [a joint venture deal with] Panasonic . . . to inflate its stock, and convert its Series F debt to equity to relieve its debt burden. We have evidence to suggest Tower inflated the value of the [joint venture's] assets from approx.. $100m to $300m in order to inflate a bargain purchase gain to bolster its equity. Furthermore, Tower has engaged in other questionable accounting maneuvers to give the appearance of strong Non-GAAP gross margins, profitability, and free cash flow such as: 1) Shifting COGS expenses to R&D and SG&A; 2) Changing the presentation of capex from "gross" to "net"; 3) Extending the useful life of its assets to reducing depreciation expense; 4) Excluding depreciation and amortization to present Non-GAAP results (not industry standard); 5) Haircutting its convertible and bank debt by inappropriately interpreting the accounting guidance."
Directly following this news, Tower securities have fallen as much as $1.81, or 14.5%, to $10.66 per share during intra-day trading on January 14, 2016.
If you are aware of any facts relating to this investigation, or purchased shares of Tower, you can assist this investigation by visiting the firm's website: http://www.bgandg.com/#!tsem/coaei. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address, email and telephone number.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | email@example.com
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