A lawsuit was filed on behalf of investors in Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) shares over alleged securities laws violations and NASDAQ:TSEM investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/18/2016 -- A shareholder in NASDAQ:TSEM shares filed a lawsuit over alleged violations of Federal Securities Laws by Tower Semiconductor Ltd. in connection with certain allegedly false and misleading statements.
Shares of Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) declined on January 14, 2016 to as low as $10.66 per share.
Investors who purchased shares of Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) have certain options and for certain investors are short and strict deadlines running. Deadline: March 22, 2016. NASDAQ:TSEM investors should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) common shares between April 30, 2012 and January 13, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between April 30, 2012 and January 13, 2016 Defendants issued allegedly false and misleading statements to investors and/or failed to disclose that the value of net tangible assets of the acquisition of a fabrication facility from Micron Technology Inc. was artificially inflated, that the value of net tangible assets of the acquisition of 51% of TowerJazz Panasonic Semiconductor Co., Ltd. from Panasonic Corporation was artificially inflated, that Tower Semiconductor's Series F Debentures were incorrectly accounted for to understate debt, and that as a result, Defendants' statements about Tower Semiconductor's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. The suit alleges that when the truth of these allegations entered the market through a research report issued by Spruce Point Capital Management, the value to Tower Semiconductor securities dropped, damaging investors.
On January 14, 2016, Spruce Point Capital Management published a report on Tower Semiconductor Ltd entitled "Leaning Tower of Losses." Among things, Spruce Point Capital Management alleged that "Evidence Suggesting [a] Brazen Accounting Scheme to Forestall [a] Bankruptcy Threat." Per Spruce Point's report: "Tower may have heavily promoted [a joint venture deal with] Panasonic . . . to inflate its stock, and convert its Series F debt to equity to relieve its debt burden. We have evidence to suggest Tower inflated the value of the [joint venture's] assets from approx.. $100m to $300m in order to inflate a bargain purchase gain to bolster its equity. Furthermore, Tower has engaged in other questionable accounting maneuvers to give the appearance of strong Non-GAAP gross margins, profitability, and free cash flow such as: 1) Shifting COGS expenses to R&D and SG&A; 2) Changing the presentation of capex from "gross" to "net"; 3) Extending the useful life of its assets to reducing depreciation expense; 4) Excluding depreciation and amortization to present Non-GAAP results (not industry standard); 5) Haircutting its convertible and bank debt by inappropriately interpreting the accounting guidance.
On February 17, 2016, NASDAQ:TSEM shares closed at $12.62 per share.
Those who purchased shares of Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego