STEVENSON, Md., May 27, 2015 (GLOBE NEWSWIRE) -- The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of Rubicon Technology, Inc. (“Rubicon” or the “Company”) (Nasdaq:RBCN) common stock pursuant and/or traceable to the Company’s public offering on or about March 19, 2014 (the “Offering”) pursuant to the Company’s Registration Statement and Prospectus (“Offering Documents”). Investors who wish to become proactively involved in the litigation have until June 29, 2015 to seek appointment as lead plaintiff.
If you have suffered a loss from investment in common stock purchased pursuant and/or traceable to the Company’s Offering, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html. You may also request more information by contacting Brower Piven either by email at hoffman@browerpiven.com or by telephone at (410) 415-6616. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff.
If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in common stock pursuant and/or traceable to the Company’s Offering. Brower Piven also encourages anyone with information regarding the Company’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
The complaint accuses the defendants of violations of the Securities Act of 1933 by virtue of the defendants’ failure to disclose in the Offering Documents that: Rubicon’s inventory had been materially impaired due to the Company’s inability to sell certain of its wafers during its first quarter of 2014 at prices greater than their cost to manufacture; high development costs, which were not offset by a reduction in idle plant costs, had caused the Company’s positive trend of shrinking losses to dramatically reverse; as a result of the material write-off of inventory and higher development costs, the trend of shrinking losses from operations, gross losses and losses per share, which were disclosed in the Offering Documents, had dramatically reversed during its first quarter of 2014, calling into doubt the prospect of Rubicon’s return to profitability; Rubicon was losing cash from operations at a very high rate, despite recording the highest revenues in a quarter since its fourth quarter of 2012, as it invested in speculative patterned sapphire substrates (“PSS”) and wafer sales at the expense of core sales; despite reassuring statements regarding Rubicon’s ability to control costs, Rubicon was actually experiencing dramatically increasing development costs that were higher than anticipated as the Company had been forced to create as many as seven iterations of various samples for each of the sixteen prospective customers even before achieving initial qualification; the “risk factors” the Company disclosed concerning PSS and wafer development costs were misleading in that they represented that losses due to the high development costs were merely possible when, in fact, they had already materialized; and, that throughout its first quarter of 2014, the Company had been selling wafers at below cost without disclosing that such sales required the Company to write off $1.1 million worth of inventory to adjust it to market value. According to the complaint, following the Company’s May 1, 2014 disclosure of disappointing financial results and that the trend of shrinking gross losses, operating losses, and losses per share from the prior quarters had dramatically reversed in its first quarter of 2014, the value of Rubicon shares declined significantly.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.