MRVL—MARVELL TECHNOLOGY GROUP INVESTORS ALERT: Lieff Cabraser Announces Securities Class Action Litigation

SAN FRANCISCO--()--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of investors who purchased or otherwise acquired the securities of Marvell Technology Group, Inc. (“Marvell” or the “Company”) (NasdaqGS: MRVL) between November 20, 2014 through September 10, 2015, inclusive (the “Class Period”).

“representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity.”

If you purchased or otherwise acquired Marvell securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than November 10, 2015. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.

Marvell investors who wish to learn more about the actions and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.

Background on the Marvell Securities Class Litigation

The actions charge Marvell and certain of its senior executives with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Marvell, headquartered in Bermuda, is a fabless semiconductor company that ships over one billion chips a year.

The actions allege that during the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that Marvell had engaged in inappropriate revenue recognition practices; (2) that the Company’s senior management encouraged a closed and ineffective control environment; (3) that the Company’s key accounting metrics were misstated; (4) that the Company lacked adequate internal controls; (5) and that, as a result of the foregoing, Defendants’ statements about Marvell’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On September 11, 2015, Marvell reported a quarterly loss of $382.4 million for its second quarter of fiscal 2016, whereas analysts on average had predicted a quarterly profit of $11.9 million. The Company also announced an internal probe by its Audit Committee into “certain revenue recognition issues in the second quarter of fiscal 2016 and any associated issues with whether senior management’s operating style during the period resulted in an open flow of information and communication to set an appropriate tone for an effective control environment.” According to the Company, the Audit Committee’s investigation was focused on the approximately 7-8% of revenue recognized in the second quarter of fiscal 2016 that, based upon the original customer request date, would have been received and earned in the third quarter of fiscal 2016 and is now no longer available for receipt in that quarter. The Company explained that the increase was indicative of softening demand for certain products, especially the storage end market. On this news, the price of Marvell common stock fell $1.71 per share, or 16.21%, from a closing price of $10.55 on September 10, 2015, to close at $8.84 per share on September 11, 2015, on extraordinarily high volume.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.

The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for twelve years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs' bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms, including in 2015.

For more information about Lieff Cabraser and the firm’s representation of investors, please visit www.lieffcabraser.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

Source/Contact for Media Inquiries Only:
Lieff Cabraser Heimann & Bernstein, LLP
Sharon M. Lee, 1-800-541-7358

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Release Summary

Class action litigation has been brought on behalf of investors who purchased or otherwise acquired the securities of Marvell Technology Group, Inc. (NasdaqGS: MRVL) between 11/20/14 through 09/10/15

Lieff Cabraser Heimann & Bernstein, LLP