This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

SemiLEDs Corporation Sued By Investor

SAN DIEGO and CHUNAN, Taiwan, July 16, 2013 /PRNewswire/ --  Shareholder rights attorneys at Robbins Arroyo LLP announce that a shareholder of SemiLEDs Corporation (NASDAQ: LEDS) has filed a complaint in the U.S. District Court for the Southern District of New York.  The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between December 9, 2010 and July 12, 2011 (the "Class Period").

(Logo:   http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

SemiLEDs Accused of Making False and Misleading Statements

According to the complaint, SemiLEDs made false and/or misleading statements, as well as failed to disclose material adverse facts about the company's business, operations, and financial performance throughout the Class Period.  Specifically, the complaint alleges that SemiLEDs failed to disclose that prices for its products were experiencing extreme pricing pressure from its customers, significantly reducing the average selling price of its products.  The complaint further alleges that SemiLEDs released financial statements that were not indicative of future operating results because the company failed to disclose known events and uncertainties, including a decline in product demand, the likely loss of a significant customer, and the decline in the value of its inventory.  As a result of these false and misleading statements and omissions, SemiLEDs shares traded at artificially inflated prices during the Class Period, reaching a high of $32.12 per share on December 21, 2010.

SemiLEDs Stock Price Drops on News of Poor Financial Results and an Inventory Charge

According to the complaint, on July 10, 2011, SemiLEDs announced disappointing results for the third quarter 2011.  For the quarter, SemiLEDs reported a net loss of $5.1 million and decrease in revenue of 43% compared to the same quarter in 2010.  In addition, SemiLEDs reported that its results were adversely affected by a $1.1 million inventory charge during the quarter, an amount equal to 7% of the value of the company's total inventory on February 28, 2011.  On this news, SemiLEDs' stock price dropped more than 10%, or $0.71, to close at $5.87 per share on July 12, 2011.  The $5.87 per share closing price represents a decline of 77% compared to the $25.76 per share price reached on the company's first day of trading, December 9, 2010.

If you invested in SemiLEDs and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law.  The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.  For more information, please go to http://www.robbinsarroyo.com.

Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/semileds-corporation/

Attorney Advertising. Past results do not guarantee a similar outcome.  

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.35 +6.61 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs