Magna International Inc. (USA) (NYSE:MAG) Investor Files Class Action Lawsuit Over Alleged Securities Laws Violations
May 04, 2012 (Shareholders Foundation) -- An investor in shares of Magna International Inc. (USA) (NYSE:MGA) filed a lawsuit in the U.S. District Court for the Southern District of New York against Magna International Inc. over alleged Violations of Federal Securities Laws in connection with certain allegedly false and misleading statements.
According to the complaint the plaintiff alleges on behalf of purchasers of Magna International Inc. (USA) (NYSE:MGA) common stock during the period between January 12, 2011 and August 5, 2011, Magna International Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934. Specifically, the plaintiff alleges that defendants issued between January 12, 2011 and August 5, 2011 allegedly materially false and misleading statements regarding Magna International's business and prospects.
Magna International Inc. Reported that ist annual Revenue rose from $16.87billion in 2009 to $28.74billion in 2011 and its Net Loss of $453million in 2009 turned into a Net Income of $1.01billion in 2011.
Shares of Magna International Inc. (USA) (NYSE:MGA) increased after ist 2:1 split on November 26, 2010 to as high as $59.71 per share in January 7, 2011.
Then on Magna International Inc reported its financial results for the second quarter ended June 30,2011.
The plaintiff alleges that the Company announced net income of $282 million, or $1.15 per diluted common share, significantly less than Wall Street estimates.
NYSE:MGA shares declined from over $54 in July 2011 to as low as $33.58 in August 2011.
NYSE:MGA shares closed 2011 at $33.31 per share. Over the course of the the first months in 2012 NYSE: MGA shares were able to regain value and reached in early March over $48 per share.
On May 3, 2012, NYSE:MGA shares closed at $42.59 per share.