NEW YORK, Oct. 27, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that class action lawsuits have been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Marvell Technology Group, Ltd. (“Marvell” or the “Company”) (NASDAQ:MRVL) securities from November 20, 2014 through September 10, 2015, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Marvell investors under the federal securities laws.
If you purchased Marvell securities during the Class Period, you may, no later than November 10, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you want more information about the Marvell Securities Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com.
The complaint alleges that throughout the Class Period, Marvell and certain of its executive officers and directors issued materially false and/or misleading information and/or failed to disclose that: (1) Marvell had engaged in inappropriate revenue recognition practices; (2) the Company’s management permitted an inappropriate and ineffective control environment; (3) Marvell’s key accounting metrics were misstated; (4) that the Company lacked adequate controls at all relevant times; (5) and as a result of the foregoing, Defendants’ statements about Marvell’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis.
On September 11, 2015, the Company reported a quarterly loss of $382.4 million for its fiscal second quarter, 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 Marvell’s accounting practices including its revenue recognition, litigation reserves, and internal controls.
Following this news, the price of Marvell’s common stock fell $1.71 per share, or nearly 17%, to close on September 11, 2015 at $8.84 per share.
On October 26, 2015, Pricewaterhouse Coopers LLP (“PwC”) resigned as the outside auditor to Marvell Technology Group, Ltd. PwC's resignation comes a little more than a month after Marvell disclosed an internal investigation into its accounting. In its resignation, PwC questioned whether Marvell’s senior management set a “tone for effective control.” At noon today, Marvell’s price per share was down more than 14% since yesterday’s closing price.
About Morgan & Morgan
Morgan & Morgan is one of the nation's largest 200 law firms. In addition to shareholder rights, the firm also practices in the areas of antitrust, personal injury, consumer protection, overtime, and product liability. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection and always fight “for the people.”
Attorney advertising. Prior results do not guarantee a similar outcome.