Insider Selling/Undisclosed Related Party Transactions
Product or Service
Securities fraud class action against Amkor Technologies on behalf of investors of Amkor alleging that Amkor and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
Amkor operates as a subcontractor of semiconductor packaging and test services worldwide. Amkor offers traditional packaging, which includes traditional leadframe products; and advanced packaging, which includes advanced leadframes and laminate products.
The securities class action lawsuit alleges that during the class period Amkor issued a series of materially false and misleading statements regarding the Company's increasing financial performance including the following:
(a) that Amkor was stuffing its customers with inventory far in excess of demand for the products and, as a result, customer inventories were rising above historical levels such that future sales would be impacted;
(b) that Amkor was experiencing rapidly rising material costs which were far in excess of budgeted material costs, thereby negatively impacting the Amkor's profit margins;
(c) that Amkor had stuffed its distribution channels prior to its note offering in order to artificially inflate Amkor operating results so that the Company could successfully raise $152 million; and
(d) as a result of the foregoing, Defendants' positive statements about Amkor and its business were lacking in a reasonable basis at all times and therefore materially false and misleading.
On April 27, 2004, Amkor issued a press release announcing that Amkor was experiencing weakness for its cell phone products. Upon this news, the price of Amkor common stock declined from $13.42 per share to $9.16 per share on extremely heavy trading volume. On July 1, 2004, Amkor issued a press release announcing that it could not meet its expected guidance for net income in the second quarter of 2004. In response to this announcement the price of Amkor common stock declined from $8.18 per share to $5.79 per share on extremely heavy trading volume of 17.2 million shares.
The complaint further alleges that on or around August 22, 2005, Amkor issued a press release announcing that the Securities and Exchange Commission issued a formal order of investigation concerning certain trading in Amkor securities. The SEC investigation relates to transactions in the Amkor securities by certain individuals, including certain insiders or former insiders and persons associated with them.
Name (Stock Symbol)
Amkor Technology, Inc. (AMKR)
Amkor Technology, Inc. is a contract manufacturer for semiconductor companies that outsource semiconductor assembly and test services.
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