The law firm of Kessler Topaz Meltzer & Check, LLP reminds Microchip Technology Inc. (Nasdaq: MCHP) (Microchip) investors that a securities fraud class action lawsuit has been filed on behalf of purchasers of Microchip common stock between March 2, 2018 and August 9, 2018, inclusive (the Class Period).
REMINDER: Investors who purchased Microchip securities during the Class Period may, no later than November 16, 2018, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit www.ktmc.com/microchip-technology-securities-class-action
According to the complaint, Microchip is a provider of microcontroller, mixed-signal analog and Flash-IP solutions.
The Class Period commences on March 2, 2018. On March 1, 2018, after the close of the market for Microchip common stock, Microchip issued a press release announcing that it had signed a definitive agreement to acquire Microsemi Corp. (Microsemi) for $68.78 per share in cash.
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The complaint alleges that, on August 9, 2018, Microchip announced first quarter fiscal 2019 operating results for the quarter ended June 30, 2018. The first quarter operating results included one month of Microsemis operating results. On a conference call conducted following the earnings announcement, Steven Sanghi, Microchips CEO since October 1991, acknowledged that Microchips due diligence on Microsemi prior to the acquisition had been inadequate and that much of Microsemis revenue reported prior to the merger was not supported by end user demand, but rather resulted from excess distribution into the channel.
Following this news, Microchips share price fell $10.67 per share, more than 10%, to close at $87.41 per share on August 10, 2018, on heavy trading volume.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) Microchip failed to do adequate due diligence of Microsemis business; and (2) as a result of the foregoing, the defendants positive statements about the companys business, operations, and prospects, including positive statements about Microsemi, were materially misleading and/or lacked a reasonable basis.
Investors who wish to discuss this securities fraud class action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299-7706 or at [email protected].
Microchip investors may, no later than November 16, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class members 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087