& Kapetan, P.A. On March 11, 2013 after the market closed,
MagnaChip Semiconductor Corporation (“MagnaChip” or the “Company”)
(NYSE: MX) disclosed in a filing with the Securities and Exchange
Commission (SEC) that as a result of incorrectly recognizing revenue,
the Company will be restating its financial statements for each of the
fiscal quarters and years in 2011 and 2012 and the first three quarters
in 2013. The Company's SEC filing states, in pertinent part, as follows:
"On March 6, 2014, the Audit Committee of the Company’s Board of
Directors determined that the Company incorrectly recognized revenue on
certain transactions and as a result will restate its financial
statements. This conclusion is based upon preliminary findings of an
ongoing internal review into practices and procedures by management,
conducted at the Audit Committee’s request by outside professional
advisors and after consultation with management and the Company’s
independent auditors. Revenue on these transactions was recognized when
products were shipped to a distributor but should have been recognized
when the distributor shipped the product to the customer. As a result,
revenue on these transactions will be reversed and recognized in the
period when the products were shipped by the distributor."
Additionally, the Company disclosed that MagnaChip's management has
concluded that one or more material weaknesses exist in the Company's
internal controls over financial reporting and that, as a result,
internal controls over financial reporting and disclosure controls and
procedures were not effective.
Following this news, MagnaChip's shares declined by $2.14 per share, or
15% in after-market hours trading to a price of $12.19 per share on
March 11, 2014.
Law Offices of Wites & Kapetan, P.A. seeks to uncover additional
information about this substantial loss of shareholder value, and
potential investor claims against MagnaChip Semiconductor Corporation.
If you are an investor who purchased MagnaChip stock you may have a
legal claim against the Company and could serve as the lead plaintiff in
a class action lawsuit. If you are interested in being the lead
plaintiff, or would like to speak with an attorney about your legal
rights, contact the attorneys at Wites & Kapetan, P.A. by email at [email protected]
or toll-free at 1 (866) 277-8631.
& Kapetan, P.A. is a law firm with offices in Oakland,
California and Lighthouse Point, Florida, with expertise in the
representation of investors in securities fraud and investor litigation
claims. You may visit its website at www.wklawyers.com.
Michele Desoer, an attorney at Wites & Kapetan, is a member of the State
Bar of California and is responsible for the content of this
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