HARTFORD, Conn., Oct. 17, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of California on behalf of all persons who purchased the publicly traded securities of Marvell Technology Group, Ltd. (the "Company") (Nasdaq:MRVL) between October 3, 2001 through October 3, 2006, inclusive, (the "Class Period"). Also included are those who acquired Marvell through its acquisition of Radlan.
The Complaint alleges that Marvell and certain of its officers and directors violated federal securities laws by issuing a series of materially false statements. Specifically, defendants made false and misleading statements and omissions concerning the backdating of the grant of stock options to management. The Company has now said that its financial statements from June of 2000 to the present cannot be relied upon, and that it will be restating financial results. The practice of manipulating stock option dates not only potentially lines the pockets of the executives, but here resulted in the overstatement of Marvell's earnings during the Class Period, and the under-booking of compensation expenses. Under accounting rules, back-dating an option grant is deemed the payment of additional compensation and must be accounted for as an expense, which Marvell failed to do.
On October 3, 2006, the defendants announced that the Company would be forced to restate its financial statements to correct for the backdating of stock options. From the time that assertions were first made in the press that Marvell's options practices might be questionable to the date of this announcement, Marvell stock sank from over $28 per share to roughly $16 per share.
If you are a member of the class, you may, no later than December 5, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.