Microchip Technology Incorporated (NASDAQ: MCHP) Investor Securities Class Action Lawsuit 09/18/2018

If you purchased a significant amount of shares of Microchip Technology Incorporated (NASDAQ: MCHP) between March 2, 2018 and August 9, 2018, and / or if you purchased any NASDAQ: MCHP shares prior to March 2018 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: November 16, 2018. NASDAQ: MCHP investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Microchip Technology
Case Name: 
Microchip Technology Shareholder Class Action Lawsuit 09/18/2018
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: MCHP
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/18/2018
Class Period Begin: 
03/02/2018
Class Period End: 
08/09/2018
Court of Filing: 
U.S. District Court for the District of Arizona
Deadline To File for Lead: 
11/16/2018
Summary: 

An investor in shares of Microchip Technology Incorporated (NASDAQ: MCHP) filed a lawsuit in the U.S. District Court for the District of Arizona over alleged violations of Federal Securities Laws by Microchip Technology Incorporated in connection with certain allegedly false and misleading statements made between March 2, 2018 and August 9, 2018.

Chandler, AZ based Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications.

On March 1, 2018, Microchip announced that it would acquire Microsemi Corporation (“Microsemi”) for $8.35 billion.
On May 8, 2018, Microchip Technology Incorporated announced its financial results for the fourth quarter and fiscal year 2018. Microchip Technology Incorporated reported that its Total Revenue rose from over $3.4 billion for the 12 months period that ended on March 31, 2017 to over $3.98 billion for the 12 months period that ended on March 31, 2018 and that its Net Income over those respective time periods increased from $164.6 million to $255.4 million.
Shares of Microchip Technology Incorporated (NASDAQ: MCHP) reached as high as $104.20 per share on June 4, 2018.

Then on August 9, 2018, Microchip Technology Incorporated disclosed that the Company was “adversely impacted by $226.9 million of Microsemi purchase accounting, restructuring and other charges,” and that Microsemi “was extremely aggressive in shipping inventory into the distribution channel” which “will provide some headwind for revenue for the next couple of quarters” for Microchip Technology Incorporated.

Shares of Microchip Technology Incorporated (NASDAQ: MCHP) declined to as low as $79.76 per share on August 17, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Microchip Technology Incorporated (NASDAQ: MCHP) common shares between March 2, 2018 and August 9, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 2, 2018 and August 9, 2018, Microchip Technology Incorporated represented that the Microsemi acquisition would be “immediately accretive” by increasing Microchip’s earnings per share as it “will add further operational and customer scale to Microchip.”, and that Microchip’s CEO Steven Sanghi represented that the “deal is accretive on day one without doing anything, without any synergy,” and was “strategically and financially, a very compelling transaction.”

On September 18, 2018, NASDAQ: MCHP shares closed at $80.39 per share.