Skip to Content

Cases & Investigations
Microchip Technology Incorporated Securities Litigation

Overview
Overview Case Updates

Type: Notable Cases

Case Number: CV-18-2914

Class Period: March 2, 2018 to August 9, 2018

Stock Symbol: NASDAQ: MCHP

Court: United States District Court for the District of Arizona

Claim Deadline: 07/20/2022

Settlement Website: http://www.microchiptechnologysecuritieslitigation.com

Settlement Amount: $9,000,000

Wolf Popper LLP is Class Counsel in a federal securities fraud class action against defendants Microchip Technology Inc. (“Microchip”); and its then Chairman and CEO Steven Sanghi; President and COO Ganesh Moorthy; and VP and CFO J. Eric Bjornholt.  The Class Representative, on behalf of the certified Class of all investors who purchased Microchip common stock on the U.S. open market between March 2, 2018 and August 9, 2018, inclusive (see above), alleges in the action that the Defendants violated the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated thereunder by making materially false or misleading statements or omissions during the Class Period related to Microchip’s acquisition of Microsemi in the Spring of 2018. Among other things, the Complaint alleges that Defendants knew, or were deliberately reckless in not knowing, that Microsemi had higher inventory levels in its product distribution channel than what Defendants believed were appropriate, and that Defendants’ statements concerning the combined company’s expected revenue figures, cash flow, and net debt leverage were materially false or misleading.
 
On August 9, 2018, Microchip stated among other things, that it had “found that Microsemi management was extremely aggressive in shipping inventory into the distribution channel,” and, Microchip had “shipped close to $100 million less in the month of June than Microsemi ex-management would have shipped,” representing “nearly half the inventory correction,” and that Defendants “expect[ed] to achieve the balance of the distribution inventory correction in the next two quarters and nearly complete the correction by the end of this calendar year.” The Complaint alleges that Defendants’ disclosures on August 9, 2018 revealed to the market the truth concerning Defendants’ allegedly materially false and misleading statements during the Class Period, and as a result of these disclosures, on August 10, 2018, Microchip common stock fell $10.67, or 10.9%, per share.
 
On June 27, 2022, the Court issued an order approving a settlement of the litigation of $9 million in cash for the benefit of damaged Class members.

Contact Instructions
Email: outreach@wolfpopper.com
Case Inquiries
Cases & Investigations:

Related Practice Areas

  1. Securities Litigation

You may share a link to this page on any of the sites listed below or send link via email:

This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Privacy Notice.

Accept & Hide Message