This is a securities class action lawsuit against MEMC Electronic Material, Inc.
MEMC designs, manufactures, and sells silicon wafers for the semiconductor industry worldwide. Its products include prime polished wafers, such as OPTIA and annealed products; epitaxial wafers consisting of thin silicon layer grown on the polished surface of the wafer; and test/monitor wafers for testing semiconductor fabrication lines and processes. MEMC's products are used in the manufacture of various semiconductor devices, including microprocessor, memory, logic, and power devices, as well as the starting material for solar cells. Its customers comprise semiconductor device manufacturers, including memory, microprocessor, and applications specific integrated circuit manufacturers, foundries, and solar cell and module manufacturers.
The class action lawsuit alleges that the MEMC failed to disclose problems MEMC was encountering at its production facilities in Italy and Texas and that because of such production issues MEMC's financial results for the quarter ended June 30, 2008 would be below target. As alleged in the class action complaint, on July 23, 2008, MEMC first disclosed that in early June 2008 there was a premature failure of a relatively new heat-exchanger at MEMC's Merano, Italy facility which caused second quarter polysilicon output to be reduced by approximately 5%. As further alleged, at approximately the same time, on June 13, 2008, MEMC's Pasadena, Texas production facility had to be significantly shut down for approximately a week because of a fire.
However, as alleged, MEMC failed to disclose these material production problems to investors and the impact they would have on MEMC's financial results until July 23, 2008. And, upon these revelations, it is alleged the price of MEMC shares declined 22%, from $53.80 per share to $42.23 per share on much heavier than usual trading volume.
Name (Stock Symbol)
MEMC Electronic Materials, Inc. (WFR)
MEMC Electronic Materials, Inc. designs, manufactures, and sells silicon wafers for the semiconductor industry.
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