BOSTON, Sept. 17, 2015 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, has filed a lawsuit in the Southern District of New York on behalf of those who purchased or otherwise acquired Marvell Technology Group, Ltd., (“Marvell” or the “Company”) (Nasdaq:MRVL) securities between November 20, 2014 and September 10, 2015, inclusive (the “Class Period”) against Marvell and certain Directors. The case is captioned Farno v. Marvell Technology Group, Ltd. case number 1:15-cv-07300.
If you purchased or otherwise acquired Marvell securities during the Class Period you may seek to be a lead plaintiff of the Class and you have until November 10, 2015 to file your motion. If you have questions about your legal rights, would like a copy of the Complaint or if you possess information relevant to this litigation, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or email him at Steven@blockesq.com. Confidentiality to whistleblowers or others with information relevant to the lawsuit is assured.
On September 11, 2015, Marvell reported that it would be unable to timely file its quarterly Form 10-Q with the United States Securities and Exchange Commission (the “SEC”) due to its internal Audit Committee conducting an independent investigation of certain accounting and internal controls over financial reporting. Specifically, the Company’s investigation has focused on the approximately 7 to 8 percent 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.
This news caused shares of Marvell to fall $1.71 per share (nearly 17%) at close on September 11, 2015, on unusually high volume, costing investors millions.
The complaint alleges that during the Class Period, Marvell Tech and certain Directors made false and/or misleading statements and/or failed to disclose that: (1) that the Company had engaged in inappropriate revenue recognition practices; (2) the Company’s senior management encouraged a closed and ineffective control environment; (3) as a result, the Company’s key accounting metrics were misstated; (4) the Company lacked adequate internal controls at all relevant times; and (5) 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.
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