According to the law firm press release, the complaint charges Maxwell and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Maxwell develops, manufactures, and markets energy storage, power delivery and microelectronic products worldwide.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding Maxwell’s financial performance and business prospects and overstated the Company’s reported revenue. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period, reaching a high of $21.20 per share on November 4, 2011.
On March 7, 2013, after the market closed, Maxwell issued a press release disclosing that the Company would be restating previously issued financial statements for 2011 and most of 2012 due to errors related to the timing of recognition of revenue from sales to certain distributors. The Company further disclosed that the financial statements should no longer be relied upon. On this news, the Company’s stock price dropped $1.01 per share on March 8, 2013 to close at $8.10 per share, a one-day decline of 11% on volume of 1.7 million shares, and a 62% decline from the stock’s Class Period high.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, included: (a) Maxwell had overstated its revenues and earnings in 2011 and 2012 in violation of Generally Accepted Accounting Principles; (b) Maxwell had reported revenues prior to the time the sales price was fixed and/or collection was reasonably assured; and (c) Maxwell’s internal accounting controls were deficient and permitted the premature recognition of revenue, leading to materially misstated financial results.
On October 24, 2013, there was an Order Consolidating the cases and appointing Clearwater as lead plaintiff, and Saxena White P.A. to serve as Lead Counsel.
On January 16, 2014, the plaintiffs filed an amended complaint with Jury Demand Consolidation Complaint for Violations of the Federal Securities Laws against all defendants.
On January 17, 2014, the plaintiffs filed an amended complaint with Jury Demand Corrected Consolidated Complaint for Violations of the Federal Securities Laws against all defendants.
On February 20, 2014, the defendants (Maxwell Technologies, Inc.) filed a Motion to Dismiss the Corrected Consolidated Complaint for Violations of the Federal Securities Laws.
On May 5, 2014 the Motion to Dismiss filed by the defendants (Maxwell Technologies, Inc.) was GRANTED with leave to amend.
On June 4, 2014, the plaintiffs filed an amended complaint with Jury Demand Amended Consolidated Complaint for Violations of the Federal Securities Laws against the defendants (Maxwell Technologies, Inc.).
The parties filed a Stipulation of Settlement on October 16, 2014. This Settlement was preliminarily approved by the Court on November 3. The Settlement was granted final approval and this case was dismissed with prejudice on February 17, 2015.