Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Diodes, Inc.
NEW YORK--(BUSINESS WIRE)-- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/diodes/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Eastern District of Texas on behalf of purchasers of Diodes, Inc. ("Diodes") (NAS: DIOD) common stock during the period between February 9, 2011 and June 9, 2011 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/diodes/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Diodes and certain of its officers and/or directors with violations of the Securities Exchange Act of 1934. Diodes, together with its subsidiaries, designs, manufactures and supplies application specific standard products in the discrete, logic and analog semiconductor markets primarily in Asia, North America and Europe.
The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company's financial performance and future prospects. Specifically, it alleges that defendants misrepresented and/or failed to disclose the following adverse facts: (a) that the Company's labor problems associated with its backend facility in China were much more severe and prolonged than publicly represented; (b) that the Company's gross margins were being impacted by higher than expected wages and labor shortages; (c) that the Company was experiencing decreasing demand for its products, especially from its LED TV and notebook customers; and (d) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On June 9, 2011, Diodes updated its financial guidance for the second quarter of 2011. For the second quarter, the Company maintained its revenue guidance of $170 to $178 million, but lowered its gross margin guidance to 32.5% plus or minus 1.5% as compared to its previous guidance of 36.5% plus or minus 1%. Defendants explained that the Company's gross margin was "being impacted by a mix shift due to a softening of demand and the slower than expected recovery from the previously disclosed manpower shortages at the Company's packaging facilities." In reaction to the announcement, the price of Diodes stock fell $4.38 per share over the next two trading days, or just over 16%, to close at $22.98 per share, on heavy trading volume.
On August 9, 2011, Diodes announced its financial results for the second quarter of 2011, the period ended June 30, 2011. For the quarter, the Company reported revenue of $169.8 million - below the Company's guidance - and gross profit margin of 32.8% - at the low end of the Company's guidance.
Plaintiff seeks to recover damages on behalf of all purchasers of Diodes common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm's recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
KEYWORDS: United States North America New York
The article Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Diodes, Inc. originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.