NEW YORK, Feb. 12, 2016 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Tower Semiconductor Ltd. (“Tower Semiconductor” or the “Company”) (NASDAQ:TSEM) and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 16-cv-00580, is on behalf of a class consisting of all persons or entities who purchased Tower Semiconductor securities between April 30, 2012 and January 14, 2016 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 Tower Semiconductor securities during the Class Period, you have until March 22, 2016 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, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Tower Semiconductor is an independent specialty foundry dedicated to the manufacturing of semiconductors and operates a semiconductor fabrication facility in Newport Beach, California.
The Complaint alleges that throughout the Class Period defendants issued false and misleading statements to investors and/or failed to disclose that: (1) the value of net tangible assets of the acquisition of a fabrication facility from Micron Technology Inc. was artificially inflated; (2) the value of net tangible assets of the acquisition of 51% of TowerJazz Panasonic Semiconductor Co., Ltd. from Panasonic Corporation was artificially inflated; (3) Tower Semiconductor's Series F Debentures were incorrectly accounted for to understate debt; and (4) as a result, defendants' statements about the Company's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On January 14, 2016, analyst firm Spruce Point Capital Management issued a report about the Company asserting, among other things, that: (1) the value of net tangible assets of the acquisition of TJP appears artificially inflated to $82 million; (2) the value of net tangible assets of the acquisition of 51% in TPSCo was artificially inflated to $181 million; (3) the Company’s improper accounting treatment for the Series F Debentures resulted in its equity being inflated by approximately $50 million as of the third quarter of 2012.
On this news, shares of Tower Semiconductor fell $1.23 per share or approximately 10% to close at $11.24 per share on January 14, 2016, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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 80 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.