ALEXANDRIA, La., Nov. 24, 2014 /PRNewswire/ -- Smith Segura & Raphael, LLP (SSR) alerts investors that a class action has been filed against GT Advanced Technologies, Inc. (NASDAQ GS: GTAT) ("GTAT"). The suit is pending in the United States District Court for the District of New Hampshire and investors have until December 8, 2014, to move for lead plaintiff.
The complaint has been filed on behalf of investors who purchased or otherwise acquired GTAT securities between November 5, 2013 and October 6, 2014, inclusive (the "Class Period"). If your purchases fall in the Class Period, you may contact SSR partner Brian D. Brooks, who is leading the firm's investigation, by calling (917) 652-9453 or emailing [email protected].
GTAT produces materials and equipment for the electronics industry. On November 4, 2013, GTAT announced a multiyear supply deal with Apple Inc. to produce sapphire glass material for use in consumer electronics products. Under the deal, Apple would provide GTAT with a prepayment of approximately $578 million paid in four installments and, starting in 2015, GTAT would reimburse Apple for the prepayment over a five-year period.
As alleged in the complaint however, after that announcement Defendants failed to disclose the significant risk that GTAT would be unable to fulfill the requirements of the supply agreement and that another company's material might be used in Apple's new product line. Additionally, GTAT hid from shareholders the fact that, as a result of problems with the Apple deal, GTAT was facing a liquidity crisis. Because of these factors, Defendants' statements about GTAT's business, operations, and prospects, including GTAT's revenue guidance for 2014, were false and misleading and/or lacked a reasonable basis.
When Apple announced the new iPhones did not use GTAT's sapphire glass, shares of GTAT declined $2.29 per share to close at $14.94 per share on September 9, 2014. On October 6, 2014, GTAT announced that it was filing for Chapter 11 bankruptcy; shares of GTAT declined $10.25 per share, nearly 93%, to close at $0.80 per share.
If you suffered a loss from your investment in GTAT securities between November 5, 2013 and October 6, 2014, please contact Mr. Brooks at (917) 652-9453 as soon as possible. No class has yet been certified in the above action.
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SOURCE Smith Segura & Raphael, LLP