NEW YORK -- (Business Wire)
Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/diodes/)
today announced that a class action has been commenced on behalf of an
institutional investor in the United States District Court for the
Eastern District of Texas on behalf of purchasers of Diodes, Inc.
(“Diodes”) (NASDAQ:DIOD) common stock during the period between February
9, 2011 and June 9, 2011 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff’s counsel, Samuel
H. Rudman or David
A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or
via e-mail at firstname.lastname@example.org. If
you are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.rgrdlaw.com/cases/diodes/.
Any member of the putative 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.
The complaint charges Diodes and certain of its officers and/or
directors with violations of the Securities Exchange Act of 1934.
Diodes, together with its subsidiaries, designs, manufactures and
supplies application specific standard products in the discrete, logic
and analog semiconductor markets primarily in Asia, North America and
The complaint alleges that, during the Class Period, defendants issued
materially false and misleading statements regarding the Company’s
financial performance and future prospects. Specifically, it alleges
that defendants misrepresented and/or failed to disclose the following
adverse facts: (a) that the Company’s labor problems associated with its
backend facility in China were much more severe and prolonged than
publicly represented; (b) that the Company’s gross margins were being
impacted by higher than expected wages and labor shortages; (c) that the
Company was experiencing decreasing demand for its products, especially
from its LED TV and notebook customers; and (d) as a result of the
foregoing, defendants lacked a reasonable basis for their positive
statements about the Company and its prospects.
On June 9, 2011, Diodes updated its financial guidance for the second
quarter of 2011. For the second quarter, the Company maintained its
revenue guidance of $170 to $178 million, but lowered its gross margin
guidance to 32.5% plus or minus 1.5% as compared to its previous
guidance of 36.5% plus or minus 1%. Defendants explained that the
Company’s gross margin was “being impacted by a mix shift due to a
softening of demand and the slower than expected recovery from the
previously disclosed manpower shortages at the Company’s packaging
facilities.” In reaction to the announcement, the price of Diodes stock
fell $4.38 per share over the next two trading days, or just over 16%,
to close at $22.98 per share, on heavy trading volume.
On August 9, 2011, Diodes announced its financial results for the second
quarter of 2011, the period ended June 30, 2011. For the quarter, the
Company reported revenue of $169.8 million – below the Company’s
guidance – and gross profit margin of 32.8% – at the low end of the
Plaintiff seeks to recover damages on behalf of all purchasers of Diodes
common stock during the Class Period (the “Class”). The plaintiff is
represented by Robbins Geller, which has expertise in prosecuting
investor class actions and extensive experience in actions involving
Robbins Geller represents U.S. and international institutional investors
in contingency-based securities and corporate litigation. With nearly
200 lawyers in nine offices, the firm represents hundreds of public and
multi-employer pension funds with combined assets under management in
excess of $2 trillion. The firm has obtained many of the largest
recoveries and has been ranked number one in the number of shareholder
class action recoveries in MSCI’s Top SCAS 50 every year since
2003. According to Cornerstone Research, the firm’s recoveries have
averaged 35% above the median for all firms over the past seven years
(2005-2011). Please visit http://www.rgrdlaw.com
for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
Source: Robbins Geller Rudman & Dowd LLP
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