Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Montage Technology Group Limited

Rigrodsky & Long, P.A.:
  • Do you, or did you, own shares of Montage Technology Group Limited (NASDAQ GS: MONT)?
  • Did you purchase your shares between September 25, 2013 and February 6, 2014, inclusive?
  • Did you lose money in your investment in Montage Technology Group Limited?
  • Do you want to discuss your rights?

Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of Montage Technology Group Limited (“Montage” or the “Company”) (NASDAQ GS: MONT) between September 25, 2013 and February 6, 2014, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of Montage during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com; or at: http://www.rigrodskylong.com/investigations/montage-technology-group-limited-mont.

Montage is a global fabless provider of analog and mixed-signal semiconductor solutions currently addressing the home entertainment and cloud computing markets. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that the Company overstated its revenue and that Montage’s largest distributor, LQW Technology Company Limited, is a mere shell company that is secretly owned in full by an undisclosed entity established by Montage and a Montage employee. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on February 6, 2014, analyst firm Gravity Research published a report which exposed the truth regarding the Company’s financial performance. Among other things, the report concluded that “[Montage] is committing fraud, and that [its] actual revenue is significantly lower than [Montage] has reported to investors due to overwhelming evidence that [Montage’s] largest distributor is nothing more than a shell company used to help fabricate [Montage’s] financials.”

On this news, shares in Montage dropped more than 25% over the next two trading days, closing at $15.72 per share on February 7, 2014, on unusually heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than April 8, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed 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.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

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