Hagens Berman Reminds Investors of the Upcoming Lead Plaintiff Deadline in the Class Action Lawsuit Against GT Advanced Technologies, Inc. (NASDAQ GS: GTAT)


SAN FRANCISCO, Nov. 18, 2014 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds investors that a class action lawsuit has been filed against GT Advanced Technologies Inc. (Nasdaq:GTAT) ("GT Advanced" or "the Company"). The suit is pending in U.S. District Court for the District of New Hampshire and investors have until December 8, 2014 to move for lead plaintiff.

The complaint has been filed on behalf of investors who purchased or otherwise acquired GT Advanced securities between November 5, 2013 and October 6, 2014, inclusive (the "Class Period"). If your purchases fall in the Class Period, you may contact Hagens Berman Partner Reed Kathrein, who is leading the firm's investigation, by calling (510) 725-3000, emailing GTAT@hbsslaw.com or visiting http://hb-securities.com/investigations/GTAT.

GT Advanced Technologies produces materials and material manufacturing equipment for the electronics, solar, and LED industries. On November 4, 2013, the Company announced a multiyear supply deal with Apple Inc., to produce sapphire glass material for use in consumer electronics products. Under the deal, 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.

Yet in the time since that announcement, the complaint alleges, Defendants made false and misleading statements, and failed to disclose material adverse facts about the Company's financial position and prospects. Specifically, Defendants failed to disclose the significant risk that the Company would be unable to fulfill the requirements of the supply agreement and that another company's material might be used in Apple's new product line. Additionally, GT Advanced hid from shareholders the fact that, as a result of problems with the Apple deal, the Company was facing a liquidity crisis. Because of these factors, 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.

When Apple announced that its new iPhone 6 and iPhone 6 Plus did not use GT Advanced's sapphire glass, shares of the Company declined $2.29 per share to close at $14.94 per share on September 9, 2014.

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 plummeted $10.25 per share, nearly 93%, to $0.80 per share.

"It looks like GT Advanced knew for a long time that they were going to fall short on their promises from the Apple deal," said Mr. Kathrein. "Yet they hid these facts from shareholders until it was too late, and their only option was to declare bankruptcy."

If you suffered a loss from your investment in GTAT securities between November 5, 2013 and October 6, 2014, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation. No class has yet been certified in the above action.

Whistleblowers: Persons with non-public information regarding GTAT should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. For more information, call Reed Kathrein at (510) 725-3000 or email GTAT@hbsslaw.com.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm's Securities Newsletter at http://www.hb-securities.com/newsletter. The firm's blog is located at www.meaningfuldisclosure.com.

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