SemiLEDs may be sued by private shareholder
Pricing issues and violations of the Securities Exchange Act regarding Class periods have led someone to take on the major GaN LED manufacturer
Shareholder rights attorneys at Robbins Arroyo LLP have announced that a private shareholder of SemiLEDs Corporation has filed a complaint in the U.S. District Court for the Southern District of New York.
The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between December 9th, 2010 and July 12th, 2011 which they refer to as the "Class Period".
According to the complaint, SemiLEDs made false and/or misleading statements and failed to disclose material adverse facts about the company's business, operations, and financial performance throughout the Class Period.
In particular, the complaint alleges that SemiLEDs failed to disclose that prices for its products were experiencing extreme pricing pressure from its customers, significantly reducing the average selling price of its products.
The complaint further alleges that SemiLEDs released financial statements that were not indicative of future operating results because the company failed to disclose known events and uncertainties, including a decline in product demand, the likely loss of a significant customer, and the decline in the value of its inventory.
As a result of these so-called false and misleading statements and omissions, SemiLEDs shares traded at artificially inflated prices during the Class Period, reaching a high of $32.12 per share on December 21st, 2010.