RADNOR, Pa., Oct. 03, 2018 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that an investor class action lawsuit has been filed against Microchip Technology Inc. ( MCHP) (“Microchip” or the “Company”) on behalf of purchasers of the Company’s securities between March 2, 2018 and August 9, 2018, inclusive (the “Class Period”).
IMPORTANT DEADLINE: Investors who purchased Microchip’s securities during the Class Period may, no later than November 16, 2018, seek to be appointed as a lead plaintiff representative of the investor class.
Microchip investors with financial losses in excess of $100,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or [email protected], to discuss this action and their legal rights and options. Additional information about this action, including how to participate in the action, may also be found at http://kaskelalaw.com/case/microchip-technology/.
On March 1, 2018, Microchip announced that it would acquire Microsemi Corp. (“Microsemi”) for $68.78 per share in cash. In announcing the acquisition, Microchip stated that the acquisition would be “immediately accretive” to Microchip. On May 29, 2018, Microchip announced the completion of the Microsemi acquisition, and advised investors that the “acquisition will significantly enhance our product portfolio, end-market diversification, operational capabilities and customer scale.”
On August 9, 2018, Microchip announced its financial and operating results for the fiscal quarter ended June 30, 2018. During a conference call following the Company's earnings announcement, Microchip’s Chief Executive Officer (“CFO”) acknowledged that the Company’s due diligence on Microsemi prior to the acquisition had been inadequate, and that much of Microsemi’s revenues reported prior to the merger were not supported by end-user demand, but rather were the result of excess distribution into the channel. Additionally, Microchip’s CEO disclosed that “[w]hile excessive shipments into distribution and contract manufacturers has been the main issue at Microsemi, we also found a culture of excessive extravagance and high spending.” Following these disclosures, shares of Microchip’s common stock fell $10.67 per share, or over 10.8%, to close on August 10, 2018 at $87.41.
Microchip investors with financial losses in excess of $100,000 are encouraged to contact Kaskela Law LLC to discuss this action and their legal rights and options. Kaskela Law LLC exclusively represents investors in state and federal courts throughout the country. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
201 King of Prussia Road
Suite 650
Radnor, PA 19087
(484) 258 – 1585
(888) 715 – 1740
[email protected]
www.kaskelalaw.com
