SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders With Losses on Their Investment in Montage Technology Group Ltd. o...
April 07 2014 - 4:00AM
Pomerantz LLP has filed a class action lawsuit against Montage
Technology Group Ltd. ("Montage" or the "Company") (Nasdaq:MONT)
and certain of its officers. The class action, filed in United
States District Court, Southern District of New York, and docketed
under 14-cv-1105, is on behalf of a class consisting of all persons
or entities who purchased or otherwise acquired Montage securities
between September 25, 2013 and February 6, 2014 both dates
inclusive (the "Class Period"). This class action seeks to recover
damages against Defendants for alleged violations of the federal
securities laws pursuant to Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder.
If you are a shareholder who purchased Montage securities during
the Class Period, you have until April 8, 2014 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, x237. Those who inquire
by e-mail are encouraged to include their mailing address,
telephone number, and number of shares purchased.
Montage Technology Group Limited, through its subsidiaries,
designs, develops, and markets various analog and mixed-signal
semiconductor solutions for the home entertainment and cloud
computing markets. Montage was founded in 2004 and is based in
Shanghai, the People's Republic of China.
The Complaint alleges that throughout the Class Period,
Defendants made false and/or misleading statements, and failed to
disclose material adverse facts about the Company's business,
operations, prospects and performance. Specifically, during the
Class Period, Defendants made false and/or misleading statements
and/or failed to disclose that (i) the Company's largest
distributor, LQW, which contributed most of the Company's sales
revenue, was created and controlled by the Company; (ii) reported
sales to LQW were fabricated; (iii) Montage's revenue was
overstated; and (iv) as a result of the above, the Company's
financial statements were materially false and misleading at all
relevant times.
On February 6, 2014, short-seller Gravity Research issued a
report claiming that Montage had manipulated its financial
statements, fabricated profits, artificially inflated gross
margins, and exaggerated revenue growth by falsely reporting sales
to a distributor, LQW, which Montage itself created and still
maintains controls over.
On this news, Montage securities declined $3.76 per share on
heavy volume or almost 18%, to close at $17.45 per share on
February 6, 2014. On the next day of trading, shares of Montage
continued to decline further, dropping $1.73 per share or almost
10% to close at $15.72 on February 7, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida,
and San Diego, 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 70 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.
CONTACT: Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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