Microchip Technology Securities Litigation

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Microchip Technology Securities Litigation
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Notice 
Claim Form
Claim Form
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File Online Claim Form
Court Documents 
Court Documents 
List of Persons Excluded from the Class
List of Persons Excluded from the Class
Institutional Electronic Filing
Institutional Electronic Filing
Contact Claims Administrator
Contact Claims Administrator

The information on this website is only a summary of the Litigation and the proposed Settlement. For more detailed information, please review the Long-Form Settlement Notice or Stipulation and Agreement of Settlement.

If you purchased or otherwise acquired Microchip Technology Inc. (“Microchip”) common stock on a U.S. open market during the class period March 2, 2018, through August 9, 2018, inclusive (the “Class Period”), and are not otherwise excluded from the Class, you could receive payment from a class action settlement.

If you are a Class member, your legal rights will be affected by this Settlement whether you act or do not act.


*** The Court authorized the mailing of a “Postcard Settlement Notice” to potential Class members. Please note Postcard Settlement Notices will be mailed to potential Class members beginning on April 1, 2022. 


CLASS DEFINITION—YOU MAY BE PART OF THE CLASS

By Order entered February 22, 2021, the Court certified the following plaintiff class (the “Class”):

All persons who purchased or otherwise acquired Microchip common stock on a U.S. open market during the class period March 2, 2018, through August 9, 2018, both dates inclusive.  Excluded from the Class are defendants in this action, Microchip, Steve Sanghi, Ganesh Moorthy, and J. Eric Bjornholt (collectively, “Defendants”), the officers and directors of Microchip during the Class Period (the “Excluded D&Os”), members of Defendants’ and Excluded D&Os’ immediate families, legal representatives, heirs, successors or assigns and any entity in which Defendants or the Excluded D&Os have or had a controlling interest. 

Also excluded from the Class are any Class Members who timely and validly submitted a request for exclusion from the Class in connection with the Class Notice Program and who did not withdraw their request for exclusion (“Excluded Class Members”).  Excluded Class Members include the legal representatives, heirs, successors, assigns, or affiliates of any Excluded Class Member (“Excluded Class Members Related Parties”) to the extent the Excluded Class Members Related Parties’ claims arise from their relationship to the Excluded Class Members or the Excluded Class Members’ purchase or acquisition of Microchip common stock on a U.S. open market during the Class Period, rather than arising independent of their relationship to the Excluded Class Members or based on the Excluded Class Members Related Parties’ separate purchase or acquisition of Microchip common stock on a U.S. open market during the Class Period.  A list of Excluded Class Members can be accessed at the link to the left or here.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

SUBMIT A PROOF OF CLAIM AND RELEASE FORM, POSTMARKED OR SUBMITTED ONLINE NO LATER THAN JULY 20, 2022. CLICK HERE TO SUBMIT A CLAIM ONLINE.

The only way to get a payment if you have a Recognized Loss.

OBJECT TO THE SETTLEMENT OR ANY RELATED ASPECT, RECEIVED NO LATER THAN JUNE 1, 2022

Write to the Court about why you do not like the Settlement.  You may, but are not required to, appear at the Final Settlement Hearing.

GO TO A HEARING

You may ask to speak in Court about the fairness of the Settlement.

DO NOTHING

Get no payment.  Give up all legal rights relating to the claims at issue in the Litigation.  You will still be a Class Member, which means that you give up your right to ever be part of any other lawsuit against the Defendants or any other Released Defendants’ Parties about the claims being resolved and released by this Settlement, and you will be bound by any judgments or orders entered by the Court in the Litigation, including the Final Judgment or Alternative Judgment dismissing the Litigation with prejudice.

 

WHAT IS THIS LITIGATION ABOUT?

Lead Plaintiff Ronald Jackson’s Amended Complaint for Violation of the Federal Securities Laws (the “Complaint”), filed on February 22, 2019, alleges that Defendants made materially false and misleading statements during the Class Period related to Microchip’s acquisition of Microsemi Corporation (“Microsemi”) in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78j, 78t) and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder (17 CFR § 240.10b-517). 

Among other things, the Complaint alleges that Defendants knew, or were deliberately reckless in not knowing, that Microsemi had higher inventory levels in its product distribution channel than what Defendants believed were appropriate, and that Defendants’ statements concerning the combined company’s expected revenue figures, cash flow, and net debt leverage were materially false or misleading. The Complaint alleges that, after the market for Microchip common stock closed on August 9, 2018, Defendants disclosed, among other things, that they had “found that Microsemi management was extremely aggressive in shipping inventory into the distribution channel,” and, Microchip had “shipped close to $100 million less in the month of June than Microsemi ex-management would have shipped,” representing “nearly half the inventory correction,” and that Defendants “expect[ed] to achieve the balance of the distribution inventory correction in the next two quarters and nearly complete the correction by the end of this calendar year.” The Complaint alleges that Defendants’ disclosures on August 9, 2018, revealed to the market the truth concerning Defendants’ allegedly materially false and misleading statements during the Class Period, and as a result of these disclosures, on August 10, 2018, Microchip common stock fell $10.67, or 10.9%, per share. Lead Plaintiff seeks to recover money and other relief for the Class.

Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts, or omissions alleged in the Litigation.  Defendants also have denied and continue to deny the allegations that Lead Plaintiff or members of the Class have suffered damages.

The Court has not decided whether Defendants or Lead Plaintiff are correct. By ordering that the Settlement Notices be issued, the Court is not suggesting that Lead Plaintiff will win or lose this case.  The Litigation is ongoing.

WHAT DOES THE PROPOSED SETTLEMENT PROVIDE?

At this time, it is not possible to make any determination as to how much any individual Class member may receive from the Settlement.

Defendants have agreed to pay, or cause to be paid, $9,000,000 in cash (the “Settlement Amount”).  The Settlement Amount, plus interest earned from the date it is established (the “Settlement Fund”), less costs, fees, and expenses (the “Net Settlement Fund”), will be divided among all eligible Class Members who send in valid and timely Proof of Claim and Release forms (“Authorized Claimants”).  Costs, fees, and expenses include Court-approved Attorneys’ Fees and Expenses; certain Notice and Administration Costs, including the costs of printing and mailing the Postcard Settlement Notice and the Longform Settlement Notice, the cost of publishing the Summary Settlement Notice, and the costs of claims administration; Taxes and Tax Expenses on the Settlement Amount; and any Court-approved award to Lead Plaintiff for his service to the Class and/or pursuant to 15 U.S.C. § 78u–4(a)(4), of his costs and expenses (including lost wages) directly relating to the representation of the Class.

In return, the Parties have agreed to dismiss the Litigation and Lead Plaintiff and all Class Members who did not exclude themselves from the Class agree to release, relinquish, and discharge all Released Claims against (i) each Defendant; (ii) each of their respective family members (for individuals) and each of their direct or indirect parent entities, subsidiaries, and related entities and affiliates (including Microsemi); and (iii) for any of the entities listed in parts (i) or (ii), their respective past and present general partners, limited partners, principals, shareholders, joint venturers, members, officers, directors, managers, managing directors, supervisors, employees, contractors, consultants, auditors, accountants, financial advisors, professional advisors, investment bankers, representatives, insurers, trusts, trustees, trustors, agents, attorneys, professionals, predecessors, successors, assigns, heirs, executors, administrators, and any controlling person thereof, in their capacities as such (collectively, the “Released Defendants’ Parties”), whether or not Class Members execute and deliver Proof of Claim and Release forms. 

THE SETTLEMENT HEARING

The Court will hold a Final Settlement Hearing at 11:00 a.m. on June 22, 2022, before the Honorable Roslyn O. Silver at the Sandra Day O’Connor United States Courthouse, United States District Court for the District of Arizona, 401 W. Washington Street, Phoenix, Arizona, 85003.  At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate.  At the Final Settlement Hearing, the Court also will consider the proposed Plan of Allocation for the proceeds of the Settlement, the application of Lead Counsel for attorneys’ fees and reimbursement of expenses, and the application for an award to Lead Plaintiff for his service to the Class and/or pursuant to 15 U.S.C. § 78u–4(a)(4) of his costs and expenses (including lost wages) directly relating to the representation of the Class.  The Court will take into consideration any written objections and will listen to Class Members who have asked to speak at the hearing.  The Court may change the date and time of the Final Settlement Hearing without notice or hold the Final Settlement Hearing by telephonic or video conference.  Any change to the Final Settlement Hearing will be posted on this website.  Please check this website before attending to be sure that the date and/or time has not changed.

FURTHER INFORMATION 

For more details regarding this case, please reference the documents filed in the case under the “Court Documents” link on the left. You may also contact the Claims Administrator for further information regarding this case.

Claims Administrator:

Microchip Technology Securities Litigation
c/o A.B. Data, Ltd.
P.O. Box 173050
Milwaukee, WI  53217
(877) 888-4851
info@MicrochipTechnologySecuritiesLitigation.com

Class Counsel:

Robert C. Finkel
Joshua W. Ruthizer
Wolf Popper LLP
845 Third Avenue, 12th Floor
New York, New York 10022
rfinkel@wolfpopper.com
jruthizer@wolfpopper.com 

SECURITIES BROKERS AND NOMINEES

Nominees who purchased or otherwise acquired Microchip common stock during the Class Period for the beneficial ownership of another are requested to send the Postcard Settlement Notice to all such beneficial owners no later than ten (10) days after receipt of the Postcard Settlement Notice. Additional copies of the Postcard Settlement Notice will be provided to such nominees upon written request sent to: 

Microchip Technology Securities Litigation
c/o A.B. Data Ltd.
Attn: Fulfillment Dept.
P.O. Box 173050
Milwaukee, WI  53217

In the alternative, nominees are requested to send a list of the names and addresses of such beneficial owners to the Administrator at the above address no later than ten (10) days after receipt of the Postcard Settlement Notice.  The Administrator will thereafter mail copies of the Postcard Settlement Notice directly to all such beneficial owners. You are entitled to reimbursement of your reasonable out-of-pocket expenses actually incurred in connection with the foregoing, up to a maximum of $0.05 plus postage at the pre-sort rate utilized by the Administrator per Postcard Settlement Notice mailed, or $0.05 per name and address provided to the Administrator. Those expenses will be paid upon request and submission of appropriate supporting documentation.

 
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