NEW YORK, Sept. 28, 2018 — Pomerantz LLP is investigating claims on behalf of investors of Microchip Technology Incorporated (“Microchip” or the “Company”) (NASDAQ: MCHP). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Microchip and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On March 1, 2018, Microchip announced that it would acquire Microsemi Corp. (“Microsemi”) for $68.78 per share in cash. In announcing the acquisition, Microchip stated that the acquisition would be “immediately accretive”—i.e., positive to earnings per share—to Microchip going forward. On May 29, 2018, Microchip announced the completion of the Microsemi acquisition, advising investors that the “acquisition will significantly enhance our product portfolio, end-market diversification, operational capabilities and customer scale.”
On August 9, 2018, Microchip announced its financial and operating results for the fiscal quarter ended June 30, 2018. During a conference call following the Company’s earnings announcement, Microchip’s Chief Executive Officer acknowledged that Microchip’s due diligence on Microsemi prior to the acquisition had been inadequate and that much of Microsemi’s revenue reported prior to the merger was not supported by end-user demand, but rather resulted from excess distribution into the channel.
Following these disclosures, Microchip’s stock price fell $10.67 per share, or 10.88%, to close at $87.41 August 10, 2018, on heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz LLP [email protected] 888-476-6529 ext. 9980