San Diego, CA -- (SBWIRE) -- 04/28/2014 -- An investor, who purchased shares of Montage Technology Group Ltd (NASDAQ:MONT), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Montage Technology Group Ltd in connection with certain allegedly false and misleading statements made between September 25, 2013 and February 6, 2014
If you purchased shares of Montage Technology Group Ltd (NASDAQ:MONT), you have certain options and you should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Montage Technology Group Ltd (NASDAQ:MONT) between September 25, 2013 and February 6, 2014, that Montage Technology Group Ltd and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Montage Technology Group Ltd reported that its annual Total Revenue rose from $29.08 million in 2010 to $78.25 million in 2012 and that its Net Loss of $8.54 million in 2010 turned into a Net Income of $18.28 million in 2012.
Shares of Montage Technology Group Ltd grew from $13.00 in October 2013 to $25.63 per share in January 2014.
On January 31, 2014, Montage Technology conducted a secondary equity offering, issuing 5.35 million shares at a value of $21 per share.
Then on February 6, 2014, a report was published that claimed that Montage Technology Group Ltd grossly overstated its revenue. Specifically, the report asserts Montage Technology’s largest distributor was a shell company which was used to help fabricate the Company’s financial statements.
On February 7, 2014, Montage Technology Group Ltd issued a statement in response to the report. Montage Technology Group Ltd said that the allegations and accusations in the report lack merit and contain numerous errors of fact, misleading speculation and misinterpretation of events.
Nevertheless, shares of Montage Technology Group Ltd declined to $13.66 per share on Feb. 7, 2014 and closed at $15.72 per share.
Those who purchased shares of Montage Technology Group Ltd (NASDAQ:MONT) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego