Lieff Cabraser Heimann & Bernstein, LLP issued the following announcement on Oct. 9.
Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the publicly traded securities of Microchip Technology Inc. (“Microchip” or the “Company”) (NASDAQ: MCHP) between March 2, 2018 and August 9, 2018, inclusive (the “Class Period”).
If you purchased or otherwise acquired Microchip’s publicly traded securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than November 16, 2018. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.
Microchip investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Microchip Securities Class Litigation
Microchip, incorporated in Delaware and headquartered in Chandler, Arizona, is a provider of microcontroller, mixed-signal analog and Flash-IP solutions.
On March 1, 2018, Microchip issued a press release announcing it had signed a definitive agreement to acquire Microsemi Corp. for $68.78 per share in cash, representing a total enterprise value of approximately $10.15 billion. The acquisition was completed on May 29, 2018.
The actions allege that throughout the Class Period, defendants issued materially false and/or misleading statements and failed to disclose that: (1) Microchip failed to do adequate due diligence of Microsemi’s business; and (2) as a result of the foregoing, the defendants’ positive statements about the Company’s business, operations, and prospects, including positive statements about Microsemi and that the acquisition would be “accretive,” were materially misleading and/or lacked a reasonable basis.
On August 9, 2018, during an earnings conference call, Microchip’s CEO, Steven Sanghi, acknowledged that Microchip’s due diligence on Microsemi prior to the acquisition had been inadequate and that much of Microsemi’s revenue reported prior to the merger was not supported by end user demand, as Microsemi “was extremely aggressive in shipping inventory into the distribution channel” which “will provide some headwind for revenue for the next couple of quarters” for Microchip. These revelations caused the price of Microchip common stock to fall by $10.67 per share, or nearly 11%, from its closing price on August 9, 2018 to close at $87.41on August 10, 2018.
Original source can be found here.
Source: Lieff Cabraser Heimann & Bernstein, LLP