QUALCOMM Inc (NASDAQ: QCOM) Investor Securities Class Action Lawsuit 01/23/2017
January 23, 2017 - An investor in shares of QUALCOMM Inc (NASDAQ: QCOM) filed a lawsuit in the U.S. District Court for the Southern District of California over alleged violations of Federal Securities Laws by QUALCOMM Inc in connection with certain allegedly false and misleading statements made between February 1, 2012 through January 17, 2017.
According to the complaint the plaintiff alleges on behalf of purchasers of QUALCOMM Inc (NASDAQ: QCOM) common shares between February 1, 2012 through January 17, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 1, 2012 through January 17, 2017 the defendants made false and/or misleading statements and/or failed to disclose that QUALCOMM Inc was engaging and/or had engaged in anticompetitive conduct to maintain a monopoly for semiconductors used in mobile phones in violation of the FTC Act, that in turn, QUALCOMM Inc lacked effective internal controls over financial reporting, and that as a result, the defendants’ public statements were materially false and misleading at all relevant times.
QUALCOMM Inc reported that its Total Revenue declined from over $25.28 billion for the 12 months period that ended on September 27, 2015 to over $23.55 billion for the 12 months period that ended on September 25, 2016 and that its Net Income for those respective time periods increased from over $5.27 billion to over $5.7 billion.
Shares of QUALCOMM Inc (NASDAQ: QCOM) grew from $44.02 per share in February 2016 to as high as $70.09 per share in October 2016.
On January 17, 2017, it was reported that U.S. antitrust officials were poised to sue QUALCOMM Inc for allegedly using unfair practices in the way it licenses its technology.
On January 20, 2017 it was reported that Apple Inc filed a $1 billion lawsuit against QUALCOMM Inc Apple Inc accused QUALCOMM Inc of overcharging for chips and refusing to pay some $1 billion in promised rebates. Among other things, Apple Inc alleged that QUALCOMM Inc attempted to extort Apple Inc into changing its responses and providing false information to the South Korea's antitrust regulator, the Korea Fair Trade Commission in exchange for QUALCOMM Inc's release of those payments to Apple and that Apple Inc refused.
Shares of QUALCOMM Inc (NASDAQ: QCOM) declined to as low as $53.80 per share on January 23, 2017.