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1 August 2013

Law firm Pomerantz files class action lawsuit against SemiLEDs

Law firm Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit in US District Court, Southern District of New York, against LED chip and component maker SemiLEDs Corp and certain of its officers, on behalf of a class consisting of all persons or entities who purchased or otherwise acquired SemiLEDs’ securities between 9 December 2010 and 12 July 2011 (the class period).

The class action filed by Pomerantz seeks to recover damages against the firm and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (specifically Rule 10b-5).

Previously, in mid-July law firm Shareholders Foundation Inc filed a lawsuit in the same court alleging violations of federal securities laws by SemiLEDs by makingĀ false and misleading statements over the same period.

The complaint by Pomerantz alleges that, throughout the class period, defendants made materially false and misleading statements regarding SemiLEDs’ business prospects, and operations. Specifically, it alleges that SemiLEDs misrepresented and failed to adequately disclose that: (a) it was experiencing known, but undisclosed, pricing pressures for its products which were reasonably likely to result in a material adverse effect on SemiLEDs’ future revenues and operating income; (b) it failed to disclose known events or uncertainties (including the reduction in demand for its products, the loss of a large customer, and the decline in value of its inventory) that had or were reasonably likely to cause SemiLEDs’ financial information not to be indicative of future operating results; and (c) it had filed a false and misleading Registration Statement and Forms 10-Q with the US Securities and Exchange Commission (SEC).

On 10 July 2011, for fiscal third-quarter 2011 (to end-May) SemiLEDs reported revenue of $5.6m (down 43% year-on-year) and a net loss of $5.1m ($0.19 per diluted common share). Results were adversely impacted by a $1.1m inventory charge during the quarter (equal to more than 7% of the firm’s total inventory at 28 February 2011). On 12 July 2011, the firm’s stock price fell by nearly 11% ($0.71 per share) to $5.87 per share.

Pomerantz says that shareholders who purchased SemiLEDs securities during the class period have until 9 September to ask the court to appoint them as Lead Plaintiff for the class. A copy of the complaint can be obtained from Pomerantz’s web-site.

See related items:

Investor lawsuit against SemiLEDs alleges securities laws violations over misleading statements

SemiLEDs’ revenue falls a further 5% due to delayed China lighting demand

SemiLEDs’ quarterly revenue drops a further 43%

SemiLEDs’ IPO raises $79m in net proceeds

Tags: SemiLEDs



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