Marvell Technology Group, Ltd. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
Marvell designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. The Company offers mobile and wireless products comprising communications and applications processors, thin modems, and connectivity solutions.
The Complaint alleges that Marvell and certain of its executive officers made a series of false and misleading statements during the Class Period and/or failed to disclose that: (1) Marvell had engaged in inappropriate revenue recognition practices; (2) the Company’s management permitted an inappropriate and ineffective control environment; (3) as a result, Marvell’s key accounting metrics were misstated; (4) that the Company lacked adequate controls at all relevant times; and (5) and as a result of the foregoing, the defendants’ statements about Marvell’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On September 11, 2015, the Company reported a quarterly loss of $382.4 million for its fiscal second quarter, against analyst expectations of a quarterly profit of $11.9 million for the quarter. The Company also announced an internal probe by its Audit Committee into Marvell’s key accounting practices including its revenue recognition, litigation reserves, and internal controls. Marvell further reported that it would be unable to timely file its quarterly report due to the fact that the Audit Committee was examining “certain revenue recognition issues in the second quarter of fiscal 2016 and any associated issues with whether senior management’s operating style during the period resulted in an open flow of information and communication to set an appropriate tone for an effective control environment.”
On this news shares, shares of Marvell stock fell $1.71 per share, or over 16%, to close on September 11, 2015 at $8.84 per share, on unusually high volume.
If you are a member of the class described above, you may no later than November 10, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706