NEW YORK, March 14, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court, Northern District of California, on behalf of all persons who purchased or otherwise acquired the securities of MagnaChip Semiconductor Corporation ("MagnaChip" or the "Company") (NYSE:MX) during the period between January 30, 2013 and March 11, 2014 (the "Class Period").
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company lacked adequate controls over financial reporting; (ii) the Company was improperly recognizing revenues; (iii) the Company's prior financial statements required restatement; and (iv) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On January 27, 2014, after the close of trading, the Company announced that it would postpone its fourth quarter 2013 earnings release and investor conference call, previously scheduled for Tuesday, January 28, 2014, to provide additional time for the Company to complete its review of its financial results for the fourth quarter and full year 2013. On this news, MagnaChip securities declined $1.41 per share, or over 8%, to close at $16.16 per share on January 28, 2014.
On March 11, 2014, the Company issued a press release announcing the need to restate its prior financial statements, as well as identifying material weaknesses in its internal controls. On this news, the Company's shares fell as much as $1.83, or about 13%, to as low as $12.50 in intraday trading on March 11, 2014.
If you wish to serve as lead plaintiff, you must move the Court no later than May 12, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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