NEW YORK, Feb. 21, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Montage Technology Group Ltd. ("Montage" or the "Company") (Nasdaq: MONT ) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 14-cv-1105, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Montage securities between September 25, 2013 and February 6, 2014 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Montage securities during the Class Period, you have until April 8, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Montage Technology Group Limited, through its subsidiaries, designs, develops, and markets various analog and mixed-signal semiconductor solutions for the home entertainment and cloud computing markets. Montage was founded in 2004 and is based in Shanghai, the People's Republic of China.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that (i) the Company's largest distributor, LQW, which contributed most of the Company's sales revenue, was created and controlled by the Company; (ii) reported sales to LQW were fabricated; (iii) Montage's revenue was overstated; and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On February 6, 2014, short-seller Gravity Research issued a report claiming that Montage had manipulated its financial statements, fabricated profits, artificially inflated gross margins, and exaggerated revenue growth by falsely reporting sales to a distributor, LQW, which Montage itself created and still maintains controls over.
On this news, Montage securities declined $3.76 per share on heavy volume or almost 18%, to close at $17.45 per share on February 6, 2014. On the next day of trading, shares of Montage continued to decline further, dropping $1.73 per share or almost 10% to close at $15.72 on February 7, 2012.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
Robert S. Willoughby Pomerantz LLP
