January 25, 2016
Bernstein Liebhard LLP today announced that a securities class action has been filed in the United States District Court for the Central District of California on behalf of a class (the “Class”) consisting of all persons or entities who purchased the securities of Tower Semiconductor Ltd. (“Tower” or the “Company”) (TSEM) from April 30, 2012 through January 13, 2016 (the “Class Period”). The complaint charges Tower and certain of its officers with violations of the Securities Exchange Act of 1934.
Plaintiffs allege that, throughout the Class Period, Defendants issued false and misleading statements to investors and/or failed to disclose that: (1) the value of net tangible assets of the acquisition of a fabrication facility from Micron Technology Inc. (“Micron”) was artificially inflated; (2) the value of net tangible assets of the acquisition of 51% of TowerJazz Panasonic Semiconductor Co., Ltd. from Panasonic Corporation (“Panasonic”) was artificially inflated; (3) Tower’s Series F Debentures (the “Debentures”) were incorrectly accounted for to understate debt; and (4) as a result, Defendants’ statements about Tower’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On January 14, 2016, analyst firm Spruce Point Capital Management issued a report about the Company claiming that the value of the net tangible assets of the acquisitions from Micron and Panasonic were artificially inflated, and that Tower understated its debt due to improper accounting relating to the Debentures. After this news, Tower stock fell approximately 10%.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Tower securities during the Class Period. If you invested in Tower securities as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than March 22, 2016.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Central District of California.