|By PR Newswire||
|March 12, 2014 11:26 AM EDT||
BOSTON, March 12, 2014 /PRNewswire/ -- On March 11, 2014, MagnaChip Semiconductor Corp. ("MagnaChip" or the "Company") (NYSE: MX) announced that the Company has uncovered accounting improprieties relating to the recognition of revenue on certain transactions and has discovered one or more material weakness in its internal controls. Specifically, the Company reports that revenue on certain transactions was inappropriately recognized when products were shipped to a distributor rather than when the distributor shipped the product to the customer. MagnaChip further announced that it anticipates the need to restate its financial statements for the first, second and third quarters of 2013 and 2012 and for the years ending 2012 and 2011 and that these financial statements should no longer be relied upon.
In addition, MagnaChip announced that it appointed Jonathan W. Kim as the Company's new Chief Accounting Officer ("CAO") to correct the accounting improprieties and assist with the restatement. Chief Financial Officer ("CFO") Margaret Sakai, who formerly held both the CFO and CAO roles, has been stripped of her CAO responsibilities following the recent announcements and will no longer serve as the Company's principal accounting officer.
On this news, MagnaChip's shares declined approximately 10% in afterhours trading. MagnaChip is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer applications.
Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating whether the Company and certain of its officers and directors have violated the federal securities law in connection with the alleged accounting improprieties. If you purchased MagnaChip stock prior to March 11, 2014 and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or at [email protected]. Confidentiality to any whistleblowers or other persons with information relevant to the investigation is assured.
Block & Leviton is a securities class action law firm representing investors nationwide for violations of the securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.
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BLOCK & LEVITON LLP
Steven Harte, Esq.
SOURCE Block & Leviton LLP