SAN FRANCISCO -- (BUSINESS WIRE) -- Girard Gibbs LLP announces an investigation of potential securities fraud claims against MagnaChip Semiconductor Corp. (NYSE:MX). MagnaChip investors are encouraged to contact securities lawyer John Kehoe at (212) 798-0159 or by email at email@example.com.
The investigation concerns whether MagnaChip and certain of its officers and/or directors allegedly violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On January 27, 2014, MagnaChip announced the postponement of its fourth quarter 2013 earnings release and investor conference call to provide additional time for the Company to complete its review of financial results for the fourth quarter and full year 2013. On this news, the price of MagnaChip shares fell $1.41 per, or approximately 8%, to close at $16.16 on January 28, 2014.
On March 11, 2014, the Company disclosed that its Audit Committee found material weaknesses in internal controls over financial reporting and other accounting improprieties relating to the Company’s recognition of revenue on sales to distributors, and that prior financial statements for the years ending 2011 and 2102 will need to be restated. According to the Company, “Revenue on these transactions was recognized when products were shipped to a distributor but should have been recognized when the distributor shipped the product to the customer. As a result, revenue on these transactions will be reversed and recognized in the period when the products were shipped by the distributor.”
On this news, shares of the Company fell $1.74 per share, or more than 12.14%, in after-market hours trading, and traded at least as low as $12.61 on March 12, 2014.
Girard Gibbs LLP is one of the nation’s leading law firms representing individual and institutional investors in securities fraud class actions and litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations.