Newman Ferrara LLP is conducting an investigation on behalf of shareholders of Maxwell Technologies, Inc. (“Maxwell”) (NasdaqGS: MXWL) into potential violations of federal securities laws and breaches of fiduciary duty by Maxwell and certain of its officers and directors.
On March 7, 2013, Maxwell announced that an investigation conducted by the audit committee of its board of directors had uncovered that Maxwell’s previously issued financial statements for the years 2011 and 2012 could no longer be relied upon because they contained “errors” relating to “the timing of recognition of revenue from sales to certain distributors.” Maxwell also revealed that it has found “material weaknesses in its internal controls over financial reporting related to the identification and evaluation of revenue transactions” and “therefore has preliminarily concluded that its internal controls over financial reporting and disclosure are not effective.”
Maxwell stated that its restatement of revenue will decrease previously reported revenues for 2011 by approximately $6.5 million and revenues in the first three quarters of 2012 by approximately $5.5 million. As a result of the investigation, certain employees were terminated and Maxwell’s Senior Vice President of Sales and Marketing resigned.
Shareholders of Maxwell Technologies stock may contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or email@example.com to discuss this investigation, their rights, or potential remedies.Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action. Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.