Press release from Business Wire
Magna International Alert: The Briscoe Law Firm and Powers Taylor, LLP Investigate Possible Breaches of Fiduciary Duty by the Officers and Directors of Magna International, Inc.
Monday, May 14, 2012
Magna International Alert: The Briscoe Law Firm and Powers Taylor, LLP Investigate Possible Breaches of Fiduciary Duty by the Officers and Directors of Magna International, Inc.17:09 EDT Monday, May 14, 2012 DALLAS (Business Wire) -- Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of Magna International, Inc. (“Magna” or “MGA”) (NYSE: MGA) related to potential securities violations between January 12, 2011 and August 5, 2011 (the “Class Period”). If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at email@example.com, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you. In a recently filed federal class action complaint, Magna and certain of its officers and directors were charged with violating the Securities Exchange Act of 1934. Specifically, the complaint alleges that during the class period the defendants issued materially false and misleading statements to investors because they misrepresented and failed to disclose (a) that Magna had entered into long-term European customer contracts at steeply discounted prices; (b) that Magna was experiencing ongoing undisclosed quality control issues at its European facilities that were resulting in higher production costs; (c) that, as a result of the foregoing, Magna was experiencing a significant decline in its European margins; (d) that defendants' representations about Magna's disclosure controls were materially false and misleading; and (e) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about Magna's European operations and business prospects during the Class Period. According to the complaint, as a result of these actions, the share price of Magna's stock dropped dramatically. According to shareholder rights attorney Willie Briscoe, “The recent revelations about Magna's alleged misrepresentations regarding its business and financial status has led our firms to investigate possible breaches of fiduciary duties and other violations of state law by Magna's officers and directors. Based on our investigation, we are prepared to institute litigation to preserve the company and the value of Magna stock for all shareholders.” The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters. Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions. Powers Taylor, LLPPatrick Powers, firstname.lastname@example.orgThe Briscoe Law Firm, PLLCWillie Briscoe, 214-706-9314WBriscoe@TheBriscoeLawFirm.com