Microchip Technology Securities Litigation

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Microchip Technology Securities Litigation
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The information on this website is only a summary of the Litigation. For more detailed information, please review the Long Form Notice.

If you purchased or otherwise acquired Microchip Technology, Inc. (“Microchip”) common stock on a U.S. open market during the class period March 2, 2018, through August 9, 2018, both dates inclusive, a class action Litigation may affect your rights.

The United States District Court for the District of Arizona (the “Court”) has determined that the litigation titled Jackson v. Microchip Technology, Inc., No. 2:18-cv-02914-ROS (the “Litigation”) may proceed as a class action pursuant to Rule 23 of the Federal Rules of Civil Procedure. If you are a Class member (as defined below), your legal rights will be affected by this Litigation whether you act or do not act. The Court has not decided whether the plaintiff or the defendants are correct. By certifying the Class and ordering that this Notice be issued, the Court is not suggesting that the plaintiff or the Class will win or lose this case. The Litigation is ongoing. Your legal rights are affected whether you act or don’t act. Please read carefully. 

*** The Court authorized the mailing of a “Postcard Notice” to potential Class members. Please note Postcard Notices will be mailed to potential Class members beginning on September 3, 2021. 

CLASS DEFINITION—YOU MAY BE PART OF THE CLASS

The Court has certified the following plaintiff class (the “Class”):

All persons who purchased or otherwise acquired Microchip common stock on a U.S. open market during the class period March 2, 2018, through August 9, 2018, both dates inclusive.  Excluded from the Class are defendants in this action, Microchip, Steve Sanghi, Ganesh Moorthy, and J. Eric Bjornholt (collectively, “Defendants”), the officers and directors of the Company during the Class Period (the “Excluded D&Os”), members of Defendants’ and Excluded D&Os’ immediate families, legal representatives, heirs, successors or assigns and any entity in which Defendants or the Excluded D&Os have or had a controlling interest.

WHAT IS THIS LITIGATION ABOUT?

Lead Plaintiff Ronald Jackson’s Amended Complaint for Violation of The Federal Securities Laws (the “Complaint”), filed on February 22, 2019, alleges that Defendants made materially false and misleading statements during the Class Period related to Microchip’s acquisition of Microsemi Corporation (“Microsemi”) in violation of federal securities laws, specifically Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78j, 78t) and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder (17 CFR § 240.10b-517).  Among other things, the Complaint alleges that Defendants knew 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.  The Complaint alleges that, on August 9, 2018, Defendants disclosed that: Microsemi’s inventory and sales practices had led to the over-shipping of inventory into Microsemi’s distribution channel; current and future GAAP and non-GAAP revenue and cash flow for the combined company would be significantly lower than previously represented until Microsemi’s inventory and sales practices conformed to Microchip’s business; Microchip would sell fewer Microsemi products in order to reduce inventory in the distribution channel; and Microchip’s net free cash flow would decrease by $110 million and its debt leverage would increase.  The Complaint alleges that as a result of these disclosures, on August 10, 2018, Microchip common stock fell $10.67, or 10.9%, per share.  Lead Plaintiff seeks to recover money and other relief for the Class.

Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts, or omissions alleged in the Litigation.  Defendants also have denied and continue to deny the allegations that Lead Plaintiff or members of the Class have suffered damage.

RIGHTS OF CLASS MEMBERS

Remaining a Class Member

If you received a Postcard Notice or Notice it was based on Defendants’ and their agents’ records reflecting that you may be a Class member in this Litigation.  Mere receipt of the Postcard Notice or Notice, however, should not be construed to indicate that a determination has been made that you are a member of the Class.  To remain a Class member, you are not required to do anything.  If you remain a Class member, you will be bound by any judgment in this Litigation, whether it is favorable or unfavorable.  If you remain a Class member, you may not pursue a lawsuit on your own with regard to any of the claims asserted or issues decided in this Litigation.  As a Class member, you will be represented by Class Counsel.  You will not be charged for the services or expenses of Class Counsel.  If the case results in a recovery for the Class, however, Class Counsel will apply to the Court for reimbursement of costs and expenses and an award of attorneys’ fees to be paid from the recovery. The amount of any such award will be determined by the Court.

Exclusion from the Class

If you want to be excluded from the Class, you must state your request in writing. To be effective, your request for exclusion must legibly (a) state your name, mailing address, daytime telephone number, and email address; (b) state the case name and your desire to be excluded from the Class; and (c) identify the date(s), price(s), and number(s) of shares of all your purchases, acquisitions, and sales of Microchip common stock during the Class Period and provide copies of supporting documentation for those transactions during the Class Period.  Do not send originals of supporting documentation.  You must also sign your request for exclusion under penalty of perjury.  If you are signing on behalf of a Class member (such as an estate, corporation, or partnership), please indicate your full name and describe the basis of your authority. Facsimile and email requests for exclusion are not acceptable.

Your request for exclusion must be postmarked no later than November 2, 2021. Facsimile and email requests for exclusion are not acceptable. Requests for exclusion that do not comply with the above requirements will be invalid. 

Do not request exclusion if you wish to be a Class member in this lawsuit.   

Further Information:

For more details regarding this case, please reference the documents filed in the case under the “Court Documents” link on the left. You may also contact the Notice Administrator for further information regarding this case.

Notice Admiistrator:

Microchip Technology Securities Litigation
c/o A.B. Data. Ltd. 
P.O. Box 173050
Milwaukee, WI  53217
(877) 888-4851
info@MicrochipTechnologySecuritiesLitigation.com

 Class Counsel:

Robert C. Finkel
Joshua W. Ruthizer
Wolf Popper LLP
845 Third Avenue, 12th Floor
New York, New York 10022
rfinkel@wolfpopper.com
jruthizer@wolfpopper.com

SECURITIES BROKERS AND NOMINEES

Nominees who purchased or otherwise acquired Microchip common stock during the Class Period for the beneficial ownership of another are requested to send the Postcard Notice to all such beneficial owners no later than ten (10) days after receipt of the Postcard Notice. Additional copies of the Postcard Notice will be provided to such nominees upon written request sent to:

Microchip Technology Securities Litigation
c/o A.B. Data Ltd.
Attn: Fulfillment Dept.
P.O. Box 173050
Milwaukee, WI  53217

In the alternative, nominees are requested to send a list of the names and addresses of such beneficial owners to the Administrator at the above address no later than ten (10) days after receipt of the Postcard Notice.  The Administrator will thereafter mail copies of the Postcard Notice directly to all such beneficial owners. You are entitled to reimbursement of your reasonable out-of-pocket expenses actually incurred in connection with the foregoing, up to a maximum of $0.05 plus postage at the pre-sort rate utilized by the Administrator per Postcard Notice mailed, or $0.05 per name and address provided to the Administrator. Those expenses will be paid upon request and submission of appropriate supporting documentation.

 

 
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