Robbins Arroyo LLP: Aixtron SE (AIXG) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the Southern District of New York. The complaint alleges that officers and directors of Aixtron SE (NASDAQGS: AIXG) violated the Securities Exchange Act of 1934 between September 25, 2014 and December 9, 2015, by making materially false and misleading statements about Aixtron’s business prospects. Aixtron, together with its subsidiaries, provides deposition equipment to the semiconductor industry worldwide. Its AIX R6 MOCVD system is designed to produce LEDs based on Gallium Nitride and can be delivered in multiple wafer configurations.
Aixtron Accused of Misrepresenting the Status of Its Customer Agreement
According to the complaint, Aixtron failed to disclose that its AIX R6 MOCVD systems failed to meet its customer’s specific qualification requirements, and that the impending failure to execute the agreement would have a substantial negative impact on the company’s prospects. On September 25, 2014, Aixtron announced that it received a large multiple tool order from China, and its American Depository Receipts (“ADRs”) jumped shortly after. In late 2014 and early to mid-2015, Aixtron issued multiple press releases touting its R6 MOCVD systems and outlining a positive outlook, anticipating strong financial growth.
The truth began to emerge on October 13, 2015, when Aixtron issued a press release disclosing that it was revising its previously issued revenue guidance for 2015 from 220 million – 250 million EUR down to 190 million – 200 million EUR due to “a postponement of shipments to a large Chinese customer which were planned for delivery in 2015.” The company also announced that “these deliveries are now expected for 2016 depending on the progress of the ongoing milestone based qualification process.” On December 9, 2015, Aixtron issued a press release announcing that it had reached an agreement with its Chinese customer regarding a substantial reduction in the volume of R6 MOCVD systems ordered from 50 to the three that had already been delivered, noting that the customer’s specific qualification requirements were not achieved. On this news, the company’s ADRs fell $3.05 per ADR, or 40%, over two trading days, to close at $4.49 per ADR on December 10, 2015.
Aixtron Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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