NEW YORK, Oct. 6, 2006 (PRIMEZONE) -- Roy Jacobs & Associates announces that it has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of purchasers of the common stock and other securities of Marvell Technology Group, Ltd. ("Marvell" or the "Company") (Nasdaq:MRVL) who purchased during the period from October 3, 2001 through October 3, 2006 (the "Class Period").
For further information you may call toll free, 1-800-347-1236, or contact counsel by e-mail by writing to classattorney@pipeline.com.
The complaint alleges that Marvell and certain of its officers and directors violated the federal securities laws by making false and misleading statements and omissions concerning the backdating of the grant of stock options to management. The Company has now said that its financial statements from June of 2000 to the present cannot be relied upon, and that it will be restating financial results. The practice of manipulating stock option dates not only potentially lines the pockets of the executives, but here resulted in the overstatement of Marvell's earnings during the Class Period, and the under-booking of compensation expenses. Under accounting rules, back-dating an option grant is deemed the payment of additional compensation and must be accounted for as an expense, which Marvell failed to do.
On October 3, 2006, the defendants announced that the Company would be forced to restate its financial statements to correct for the backdating of stock options. From the time that assertions were first made in the press that Marvell's options practices might be questionable to the date of this announcement, Marvell stock sank from over $28 per share to roughly $16 per share.
If you purchased Marvell stock or other securities during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased Marvell stock or other securities from October 3, 2001 through October 3, 2006. You are not required to have sold your Marvell stock or other securities in order to claim damages, or to serve in this role. All motions for appointment as Lead Plaintiff must be filed with the Court by December 5, 2006.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.