The Shareholders Foundation announces that an investigation for investors, who purchased shares of Magnachip Semiconductor Corp (NYSE:MX) in 2012 or earlier and currently hold any of those NYSE:MX shares, is ongoing concerning potential breaches of fiduciary duties by certain Magnachip Semiconductor directors and officers.
Shares of Magnachip Semiconductor Corp declined from $22.86 per share in September 2013 to as low as $5.00 per share on March 10, 2015.
Investors who are current long term investors in Magnachip Semiconductor Corp (NYSE:MX) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in NYSE:MX stocks follows a lawsuit filed recently against Magnachip Semiconductor Corp over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:MX stocks, concerns whether certain Magnachip Semiconductor officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Northern District of California the plaintiff alleges that between February 1, 2012 and February 12, 2015 Magnachip Semiconductor Corp allegedly failed to disclose that it was improperly recognizing revenues, resulting in its prior financial statements overstating its revenues and earnings in 2011, 2012, and the first nine months of 2013 and that as a result of defendants’ statements, Magnachip Semiconductor Corp (NYSE:MX) securities traded at allegedly artificially inflated prices between February 1, 2012 and February 12, 2015, with its stock price reaching a high of $23.57 per share on October 21, 2013, and that MagnaChip Semiconductor Corp’s controlling shareholder, Avenue Capital Management II, L.P., was able to sell more than 16.1 million MagnaChip Semiconductor Corp shares in secondary stock offerings and on the open market between February 1, 2012 and February 12, 2015 at allegedly fraud-inflated prices, receiving $232.675 million in gross proceeds.
On January 27, 2014, Magnachip Semiconductor Corp announced the postponement of its fourth quarter 2013 earnings release and conference call. On March 11, 2014, Magnachip Semiconductor Corp announced that the need to restate its prior financial statements, as well as identifying material weaknesses in its internal controls.
On May 20, 2104, Magnachip Semiconductor Corp announced that Sang Park has retired as Chairman, Chief Executive Officer and Director, effective immediately.
On November 12, 2014, Magnachip Semiconductor Corp announced the completion of an independent internal review into its accounting practices and procedures that was conducted by the Audit Committee of the Company’s Board of Directors. Magnachip Semiconductor Corp said that as a result of the preliminary findings of the Investigation, the Company’s financial statements for each of the fiscal years ended December 31, 2012 and December 31, 2011 and the quarters ended March 31st, June 30th, andSeptember 30th in 2013 and 2012 included in the Company’s 2012 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for 2013, and together with all three, six and nine month financial information contained therein, should no longer be relied upon, and that it will be restating as appropriate its financial statements.
On January 28, 2015, Magnachip Semiconductor Corp announced that it expected to complete and file its Annual Report on Form 10-K for the fiscal year ended December 31, 2013, which will include its restated annual financial statements for the years ended December 31, 2012 and 2011 (and simultaneously complete and file its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2014, June 30, 2014 and September 30, 2014, which will include the corresponding comparative restated financial statements for the quarterly periods ended March 31, 2013, June 30, 2013 and September 30, 2013, respectively, during the week of February 9, 2015, but no later than February 13, 2015.
On February 12, 2015 Magnachip Semiconductor Corp announced that it filed with the Securities and Exchange Commission (“SEC”) its Annual Report on Form 10-K for the year ended December 31, 2013, which contains audited financial statements of the Company as of and for the years ended December 31, 2013, 2012 and 2011. In addition, Magnachip Semiconductor Corp said that it filed its quarterly reports on Form 10-Q for the first three quarters of 2014.
Those who purchased shares of Magnachip Semiconductor Corp (NYSE:MX) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com