Levi & Korsinsky announces the filing of a class action lawsuit in the United States District Court for the Northern District of California on behalf of shareholders who purchased MagnaChip Semiconductor Corporation (NYSE: MX) securities between February 1, 2012 and February 12, 2015.
The complaint alleges that MagnaChip failed to disclose that it improperly recognized revenues, resulting in the overstatement of revenues and earnings in financial statements from 2011, 2012, and the first nine months of 2013. As a result of the aforementioned, MagnaChip traded at artificially inflated prices, allowing controlling shareholder Avenue Capital Management II, L.P. to sell more than 16.1 million shares in secondary stock offerings for $232.675 million in gross proceeds. On February 12, 2015, the Company filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2013, restating its financial results for fiscal years 2011, 2012, and the first three quarters of 2013. On April 1, 2015, the Company received notice from NYSE that it is no longer compliant with listing requirements. If you suffered a loss in MagnaChip you have until June 22, 2015 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
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