|By PR Newswire||
|March 11, 2014 06:40 PM EDT||
NEW YORK, March 11, 2014 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of MagnaChip Semiconductor Corporation ("MagnaChip" or the "Company") (NYSE: MX). Investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 237.
The investigation concerns whether MagnaChip and certain of its officers and/or directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On January 27, 2014, the Company filed a Form 8-K with the Securities and Exchange Commission ("SEC"), announcing 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, shares of MagnaChip fell $0.34 per share, or more than 1.94%, on intraday trading to a price of $17.23 on January 28, 2014.
On March 11, 2014, the Company announced in an SEC filing that, "On March 6, 2014, the Audit Committee of the Company's Board of Directors determined that the Company incorrectly recognized revenue on certain transactions and as a result will restate its financial statements. This conclusion is based upon preliminary findings of an ongoing internal review into practices and procedures by management, conducted at the Audit Committee's request by outside professional advisors and after consultation with management and the Company's independent auditors. 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 $1.93 per share, or more than 13.47%, in after-market hours trading to a price of $12.40 per share on March 11, 2014.
The Pomerantz Firm, with offices in New York, Chicago, San Diego and Florida, 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 70 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.
Robert S. Willoughby
SOURCE Pomerantz LLP