The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Silicon Motion Technology Corporation (SIMO)

Published a year ago via Business Wire

The Law Offices of Frank R. Cruz reminds investors of the upcoming October 31, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Silicon Motion Technology Corporation (“Silicon Motion” or the “Company”) (NASDAQ: SIMO) American Depositary Shares (“ADSs”) between June 6, 2023 and July 26, 2023, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On July 26, 2023, MaxLinear announced that it was terminating a merger agreement with Silicon Motion less than a day after Chinese regulatory authorities had approved the combination.

On this news, Silicon Motion’s stock price fell $12.84, or 19.6%, to close at $52.51 per ADS on July 27, 2023, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) there had been a material downturn in the semiconductor industry and rising interest rates; (2) MaxLinear had determined to unilaterally terminate the Merger in the event the Merger was approved by Chinese regulatory authorities; (3) MaxLinear intended to argue that certain conditions in Article 6 of the Merger Agreement had not been satisfied as required by May 5, 2023 (i.e., before the Class Period) as a basis to terminate the Merger; and (4) as a result of the foregoing, defendants had materially misrepresented the viability of the Merger, the purported benefits of the Merger, and the likelihood that the Merger would be consummated; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased or otherwise acquired Silicon Motion ADSs during the Class Period, you may move the Court no later than October 31, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts