MINNEAPOLIS, Nov. 17, 2006 (PRIMEZONE) -- Lockridge Grindal Nauen P.L.L.P. has filed a class action suit in the United States District Court for the Northern District of California against Marvell Technology Group Ltd. ("Marvell" or the "Company")(Nasdaq:MRVL) and certain of its officers and directors, on behalf of all persons or entities who purchased the publicly traded common stock of Marvell between February 24, 2005 and October 2, 2006, inclusive (the "Class Period").
The Complaint alleges that during the Class Period, defendants violated Sections 10(b), 20(a) and 14(a) of the Securities Exchange Act of 1934 by publicly issuing a series of false and misleading statements regarding the Company's business and financial results, thus causing Marvell's publicly traded common stock to trade at artificially inflated prices.
In particular, the Complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about the Company's financial status, business, and prospects. Specifically, defendants are alleged to have failed to disclose: (1) that the actual date of significant stock option grants to company executives were purposely concealed by the Company; (2) that the Company's financial statements were presented in violation of generally accepted accounting principles ("GAAP"); (3) that the Company failed to have in place the personnel and controls necessary to issue accurate financial reports and projections; and (4) that, as a result, the Company's financial results were materially overstated at all relevant times.
On October 2, 2006, after the close of trading, Marvell filed a Form 8-K with the SEC which set forth the conclusion of its special committee that Marvell's financial statements and all earning press releases and similar communications issued by the Company relating to periods beginning on or after its initial public offering in June 2000 should no longer be relied on. The Company announced that it would restate historical financial statements to record additional non-cash charges for stock-based compensation expense related to certain past option grants. On October 3, 2006, based in substantial part on these revelations, Marvell stock plummeted, closing at $16.80 per share, a decline of $2.29 per share or approximately 12%.
Also, during the Class Period, it is alleged that Marvell insiders sold approximately 4 million artificially inflated Marvell shares for proceeds of approximately $175 million.
If you are a member of the proposed Class, you may move the court no later than December 5, 2006 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.
Plaintiff seeks to recover damages on behalf of the Class and is represented by Lockridge Grindal Nauen P.L.L.P. If you have questions about the lawsuit or would like to discuss it with an attorney, please call or e-mail:
Karen H. Riebel, Esq. (khriebel@locklaw.com)
Lockridge Grindal Nauen P.L.L.P.
100 Washington Avenue South, Suite 2200
Minneapolis, MN 55401
(612) 339-6900
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.