The Shareholders Foundation announces that an investor, who purchased shares of Rubicon Technology, Inc. (NASDAQ:RBCN), filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by Rubicon Technology, Inc. in connection with certain allegedly false and misleading statements made in connection with in Rubicon Technology’s public stock offering on or about March 19, 2014 (“offering”).
Investors who purchased shares of Rubicon Technology, Inc. (NASDAQ:RBCN) have certain options and for certain investors are short and strict deadlines running. Deadline: June 29, 2015. NASDAQ:RBCN investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Rubicon Technology, Inc. (NASDAQ:RBCN) common stock in the Company’s public offering on or about March 19, 2014, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that that the Registration Statement in connection with in Rubicon Technology’s public stock offering on or about March 19, 2014 contained allegedly untrue statements of material facts, allegedly omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. The plaintiff alleges that the Registration Statement negligently failed to disclose material trends, events and uncertainties known to management that were reasonably expected to have a material impact on Rubicon Technology’s income from continuing operations, including the reversal of its trend of shrinking losses, higher-than-expected development costs and inventory write-offs due to Rubicon Technology’s inability to sell certain of its wafers during its 2014 first quarter at prices greater than their cost to manufacture, causing such inventory to be impaired under applicable accounting rules and regulations.
On December 6, 2013, Rubicon Technology, Inc filed with the Securities and Exchange Commission (“SEC”) an amended shelf registration statement (the “Form S-3A”), which included a form of prospectus (the “Prospectus”) authorizing Rubicon Technology, Inc. and to-be-identified “selling stockholders” to sell up to $100,000,000 worth of shares of Rubicon Technology, Inc. common stock, at any time, in one or more offerings.
On March 19, 2014, Rubicon Technology, Inc. filed with the SEC a prospectus supplement (the “Prospectus Supplement”), offering to register for sale at $13.00 per share 2.5 million shares of Rubicon Technology, Inc. (NASDAQ:RBCN) common stock (not including an overallotment of 375,000 shares) by selling shareholder Cross Atlantic Funds (a group of funds controlled by one of Rubicon’s directors). The Offering was sold pursuant to the Form S-3A, the Prospectus and the Prospectus Supplement (jointly referred to herein as the “Registration Statement”).
On May 1, 2014, Rubicon Technology, Inc. announced its first quarter of 2014 results and hosted a conference call regarding its first quarter of 2014. The plaintiff claims that Rubicon Technology, Inc reported disappointing financial results and revealed, among other things, that the trend of shrinking gross losses, operating losses, and losses per share from the prior quarters had dramatically reversed in the first quarter of 2014, reporting substantial increases in gross losses of $7.5 million, losses from operations of $10.9 million, and losses per share of $0.43. The price of Rubicon Technology, Inc. (NASDAQ:RBCN) common stock declined by 16%, from about $10 per share to $8.51 per share, and declined another almost 6% to $8.01 per share on May 5, 2014.
Those who purchased shares of Rubicon Technology, Inc. (NASDAQ:RBCN) 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