STEVENSON, Md., May 10, 2012 (GLOBE NEWSWIRE) -- Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of all purchasers or entities that purchased the securities of Magna International Inc. ("Magna" or the "Company") (NYSE:MGA) during the period between January 12, 2011 and August 5, 2011, inclusive (the "Class Period").
If you have suffered a net loss for all transactions in Magna International Inc. securities during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at http://www.browerpiven.com/">www.browerpiven.com, by email at mailto:hoffman@browerpiven.com">hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years.
No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than July 3, 2012 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the Company had entered into long-term European customer contracts at steeply discounted prices, that the Company was experiencing ongoing undisclosed quality control issues at its European facilities that were resulting in higher production costs, and that, as a result of the foregoing, Magna was experiencing a significant decline in its European margins. According to the complaint, After, on August 5, 2011, Magna issued a press release announcing net income of $282 million, or $1.15 per diluted common share, significantly less than Wall Street estimates, for the quarter ended June 30, 2011, and after a conference call wherein it was explained that, while Magna's year-over-year sales increased by 24%, the Company's weaker than expected results were primarily caused by long standing, underpriced European customer contracts and quality control issues in Europe, the value of Magna shares declined significantly.
If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.