Press release from Business Wire
Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Magna International Inc.
Tuesday, May 08, 2012
Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Magna International Inc.11:18 EDT Tuesday, May 08, 2012 WILMINGTON, Del. (Business Wire) -- Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the securities of Magna International Inc. (“Magna International” or the “Company”) (NYSE: MGA) between January 12, 2011 and August 5, 2011 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors (the “Complaint”). If you purchased shares of Magna International during the Class Period, or purchased shares prior to the Class Period and still hold Magna International stock, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Scott J. Farrell, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to email@example.com, or at: http://www.rigrodskylong.com/investigations/magna-international-inc-mga. Magna International, a Canadian corporation headquartered in Aurora, Ontario, is a diversified global automotive supplier. The Company designs, develops and manufactures technologically advanced automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business operations, financial condition and prospects. Specifically, the Complaint alleges that: (i) the Company had entered into long-term European customer contracts at steeply discounted prices; (ii) the Company was experiencing ongoing undisclosed quality control issues at its European facilities that were resulting in higher production costs; (iii) the Company was experiencing a significant decline its European margins as a result of the foregoing; (iv) defendants' misrepresentations about the Company's disclosure controls were materially false and misleading; and (v) defendants lacked a reasonable basis for their positive statements about the Company's European operations and business prospects during the Class Period. According to the Complaint, on August 5, 2011, the Company announced its financial results for the second quarter of fiscal 2011, in particular, net income of $282 million, or $1.15 per diluted common share - well below analysts' estimates. On that same day, a conference call between the Company and analysts and investors revealed that weaker than expected results were primarily caused by long standing, under-priced European customer contracts and quality control issues in Europe. In response to this news about the Company's European operations, the price of the Company's common stock closed at $39.42 per share on August 5, 2011, compared to a close of $44.24 per share on August 4, 2011. If you wish to serve as lead plaintiff, you must move the Court no later than July 3, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States. Attorney advertising. Prior results do not guarantee a similar outcome. Rigrodsky & Long, P.A.Scott J. Farrell, EsquirePeter Allocco888-969-4242516-683-3516Fax: firstname.lastname@example.org://www.rigrodskylong.com