Microchip Technology Inc. (Nasdaq: MCHP)
A class action lawsuit has been filed in the United States District Court for the District of Arizona on behalf of those who purchased shares of Microchip Technology Inc. (Nasdaq: MCHP), between March 2, 2018 to August 9, 2018 (the "Class Period").
The complaint alleges that during the Class Period, defendants made false and misleading statements regarding the Microsemi acquisition, including that it would be “immediately accretive,” increasing Microchip’s earnings per share by “add[ing] further operational and customer scale to Microchip,” that the deal would be “accretive on day one without doing anything, without any synergy,” and that “strategically and financially, [it was] a very compelling transaction.” As a result of defendants’ false statements, Microchip securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $103 per share.
Then on August 9, 2018, Microchip announced its financial results for the first quarter of fiscal 2019. The press release announcing the results stated that the Company’s financial performance for the quarter ended June 30, 2018 had been “adversely impacted by $226.9 million of Microsemi purchase accounting, restructuring, and other charges.” In a conference call the same day discussing the Company’s results, Microchip’s CEO, Steven Sanghi, admitted that Microsemi “was extremely aggressive in shipping inventory into the distribution channel,” which would “provide some headwind for revenue for the next couple of quarters” for Microchip. As a result, the price of Microchip common stock declined $10.67 per share, or nearly 11%, to close at $87.41 per share on August 10, 2018.
If you are a current shareholder and/or purchased stock between March 2, 2018 to August 9, 2018 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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