| Company: | Sequans Communications SA, |
| Ticker Symbol: | SQNS |
| Class Period: | Apr-15-11 to Jul-27-11 |
| Date Filed: | Sep-12-11 |
| Lead Plaintiff Deadline: | Nov-11-11 |
| Court: | Southern District of New York |
| Allegations: | |
The complaint charges Sequans and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Company is a designer, developer and supplier of 4G semiconductor solutions for wireless broadband. The 4G market consists of two primary technologies, WiMAX and 4G LTE. At the time of the IPO, the Company derived substantially all of its revenues from sales to the WiMAX segment of the 4G market.
On or about April 14, 2011, the Prospectus with respect to the IPO, which forms part of the Registration Statement, became effective and 7.7 million shares of Sequans ADSs were sold to the public at $10 per ADS.
The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) revenues from the Company's WiMAX products were declining; (b) the Company was not in position to generate any meaningful revenues from sales of 4G LTE products until late 2012; (c) the Company's largest customer, HTC, and the industry in general, was focusing more on 4G LTE offerings as opposed to WiMAX offerings, including WiMAX products offered by the Company; (d) the Company would not experience sales growth during 2011 and in fact would experience sales declines during that period; (e) the Company was becoming increasingly more dependent upon sales from its largest customer, HTC, and sales from that customer had declined and would continue to decline; and (f) as a result of the foregoing, defendants' positive statements about the Company were lacking in a reasonable basis of fact and were materially false and misleading when made.
On July 28, 2011, before the market opened, Sequans announced financial results for the second quarter of 2011, the period ended June 30, 2011, and reported net profit of $0.1 million, or $0.00 per diluted ADS, compared to a net profit of $1.9 million, or $0.07 per ADS, in the first quarter of 2011 and a net profit of $0.6 million, or $0.02 per ADS, in the second quarter of 2010.
At the time of the filing of the complaint, Sequans ADSs were trading in the range of $5.50-$6.00 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.
