The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of all persons and entities who purchased or otherwise acquired the securities of MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”) (NYSE:MX) between January 30, 2013 and March 11, 2014, both dates inclusive (the “Class Period”).
If you purchased or otherwise acquired the securities of MagnaChip during the Class Period, you may move the Court for appointment as lead plaintiff by no later than May 12, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
MagnaChip investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the MagnaChip Securities Class Litigation
The action charges MagnaChip and certain of its officers and directors with violations of the Securities and Exchange Act of 1934. MagnaChip, based in Seoul, South Korea, designs and manufactures analog and mixed-signal semiconductor products for high-volume consumer applications.
The action alleges that throughout the Class Period, defendants made materially false and misleading statements regarding MagnaChip’s business, operational and compliance policies. Specifically, defendants allegedly made false and/or misleading statements and/or failed to disclose that: (i) MagnaChip lacked adequate controls over financial reporting; (ii) the Company was improperly recognizing revenues; and (iii) the Company’s prior financial statements required restatement.
On January 27, 2014, after the close of trading, MagnaChip announced that it would postpone its fourth quarter 2013 earnings release and investor conference call that was scheduled for the next day to provide additional time for the Company to complete its review of its financial results for the fourth quarter and full year 2013. On this news, the price of MagnaChip stock fell $1.41 per share, or over 8%, to close at $16.16 per share on January 28, 2014.
On March 11, 2014, the Company issued a press release announcing that it had incorrectly recognized revenue on certain transactions and, as a result, will restate its financial statements for each of the first, second and third quarters of 2013 and 2012 and for the years ending 2012 and 2011. MagnaChip also announced that it identified material weaknesses in its internal controls. On this news, the price of MagnaChip stock fell another $0.40 per share, or approximately 3%, from its closing price on $14.33 on March 11, 2014 to close at $13.93 on March 12, 2014, on unusually high trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation for eleven years. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eleven consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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Contacts:
Lieff
Cabraser Heimann & Bernstein, LLP
Sharon M. Lee, 1-800-541-7358
