| Company: | Marvell Technology Group, Ltd. |
| Ticker Symbol: | NASD: MRVL |
| Class Period: | October 3, 2001 to October 3, 2006 |
| Date Filed: | Oct-06-06 |
| Lead Plaintiff Deadline: | Dec-05-06 |
| Court: | Northern District, CA |
| Allegations: |
A class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of purchasers of the common stock and other securities of Marvell Technology Group, Ltd. ("Marvell" or the "Company") (Nasdaq:MRVL) who purchased during the period from October 3, 2001 through October 3, 2006 (the "Class Period").
The complaint alleges that Marvell and certain of its officers and directors violated the federal securities laws by making false and misleading statements and omissions concerning the backdating of the grant of stock options to management. The Company has now said that its financial statements from June of 2000 to the present cannot be relied upon, and that it will be restating financial results. The practice of manipulating stock option dates not only potentially lines the pockets of the executives, but here resulted in the overstatement of Marvell's earnings during the Class Period, and the under-booking of compensation expenses. Under accounting rules, back-dating an option grant is deemed the payment of additional compensation and must be accounted for as an expense, which Marvell failed to do.
On October 3, 2006, the defendants announced that the Company would be forced to restate its financial statements to correct for the backdating of stock options. From the time that assertions were first made in the press that Marvell's options practices might be questionable to the date of this announcement, Marvell stock sank from over $28 per share to roughly $16 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint alleges that Marvell and certain of its officers and directors violated the federal securities laws by making false and misleading statements and omissions concerning the backdating of the grant of stock options to management. The Company has now said that its financial statements from June of 2000 to the present cannot be relied upon, and that it will be restating financial results. The practice of manipulating stock option dates not only potentially lines the pockets of the executives, but here resulted in the overstatement of Marvell's earnings during the Class Period, and the under-booking of compensation expenses. Under accounting rules, back-dating an option grant is deemed the payment of additional compensation and must be accounted for as an expense, which Marvell failed to do.
On October 3, 2006, the defendants announced that the Company would be forced to restate its financial statements to correct for the backdating of stock options. From the time that assertions were first made in the press that Marvell's options practices might be questionable to the date of this announcement, Marvell stock sank from over $28 per share to roughly $16 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
