NEW YORK, Oct. 02, 2015 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of investors who purchased or otherwise acquired the securities of Marvell Technology Group, Inc. (“Marvell” or the “Company”) (Nasdaq:MRVL) between November 20, 2014 through September 10, 2015, inclusive (the “Class Period”). Shareholders of Marvell Technology Group with significant losses are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.
The filed actions allege that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that Marvell had engaged in inappropriate revenue recognition practices; (2) that the Company’s senior management encouraged a closed and ineffective control environment; (3) that the Company’s key accounting metrics were misstated; (4) that the Company lacked adequate internal controls; (5) and that, as a result of the foregoing, Defendants’ statements about Marvell’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On September 11, 2015, Marvell reported a quarterly loss of $382.4 million for its second quarter of fiscal 2016, whereas analysts on average had predicted a quarterly profit of $11.9 million. The Company also announced an internal probe by its Audit Committee into “certain revenue recognition issues in the second quarter of fiscal 2016 and any associated issues with whether senior management’s operating style during the period resulted in an open flow of information and communication to set an appropriate tone for an effective control environment.” According to the Company, the Audit Committee’s investigation was focused on the approximately 7-8% of revenue recognized in the second quarter of fiscal 2016 that, based upon the original customer request date, would have been received and earned in the third quarter of fiscal 2016 and is now no longer available for receipt in that quarter. The Company explained that the increase was indicative of softening demand for certain products, especially the storage end market. On this news, the price of Marvell common stock fell $1.71 per share, or 16.21%, from a closing price of $10.55 on September 10, 2015, to close at $8.84 per share on September 11, 2015, on extraordinarily high volume.
If you purchased the shares of Marvell Technology Group during the period from November 20, 2014 through September 10, 2015, inclusive, you may, no later than November 10, 2015, request that the Court appoint you lead plaintiff of the proposed class.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the “Marvell Investigation.”
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