NEW YORK, Oct. 30, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against GT Advanced Technologies, Inc. ("GT Advanced" or the "Company") (Nasdaq:GTAT) and certain of its officers. The class action, filed in United States District Court, District of New Hampshire, and docketed under 14-cv-00485, is on behalf of a class consisting of all persons or entities who purchased GT Advanced securities between November 5, 2013 and October 6, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased GT Advanced securities during the Class Period, you have until December 8, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
GT Advanced is a diversified technology company producing advanced materials and innovative crystal growth equipment for the global consumer electronics, power electronics, solar and LED industries.
On November 4, 2013, the Company announced that it had entered into a multiyear supply agreement with Apple Inc. ("the Apple Agreement") to provide sapphire material. Under the Apple Agreement, GT Advanced would own and operate ASF furnaces and related equipment to produce the material at an Apple facility in Arizona. Pursuant to the Apple Agreement, Apple would provide GT Advanced with a prepayment of approximately $578 million paid in four installments and, starting in 2015, the Company would reimburse Apple for the prepayment over a five-year period.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that there were significant risks that the Company would be unable to fulfill the requirements of the Apple Agreement to supply sapphire material; (2) that the Company's sapphire material would not be used in the Apple iPhone 6 devices; (3) that, as a result of the Apple Agreement problems, the Company was facing a liquidity crisis; and (4) that, as a result of the foregoing, Defendants' statements about GT Advanced's business, operations, and prospects, including the Company's revenue guidance for 2014, were false and misleading and/or lacked a reasonable basis.
On September 9, 2014, Apple revealed that its new iPhone 6 and iPhone 6 Plus smartphones utilized Corning's Gorilla Glass for the display instead of GT Advanced's sapphire material as investors were expecting.
On this news, shares of GT Advanced declined $2.29 per share, nearly 13%, to close on September 9, 2014, at 14.94 per share, on unusually heavy volume.
On October 6, 2014, GT Advanced announced that the Company was filing for bankruptcy protection under Chapter 11. According to the Company, as of September 29, 2014 GT Advanced had approximately $85 million of cash remaining and the Company was seeking debtor-in-possession financing in order to satisfy obligations associated with the daily operation of its business.
On this news, shares of GT Advanced declined $10.25 per share, nearly 93%, to close on October 6, 2014, at $0.80 per share, on unusually heavy volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, 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.