Securities fraud class action lawsuit against Micron Technologies.
The class action lawsuit alleges that Micron and its employees (along with others in its industry) were engaged in a scheme to manipulate the price of dynamic random access memory, a type of computer memory semiconductor chip, commonly known as DRAM.
The class action complaint alleges Micron falsified its public statements and financial reporting by concealing the following material adverse facts from the investing public:
(a) that Micron and its co-conspirators had entered into and engaged in a combination and conspiracy in the United States and elsewhere to suppress and eliminate competition by fixing the prices of DRAM to be sold to certain original equipment manufacturers of personal computers and servers;
(b) that Micron's publicly reported sales and earnings had been improperly inflated due to illegal price-fixing activities; and
(c) that as a result of Micorn's participation in the illegal price-fixing activities, Micron's sales and earnings reports and forward-looking price forecasts issued during the Class Period were false and misleading.
The complaint further alleges that as a result of Micron's false and misleading Class Period statements, Micron's shares traded at inflated prices enabling Micron to issue more than $632 million worth of debt during 2003, sell over $480 million worth of warrants and complete numerous stock-for-stock acquisitions using Micron's inflated shares as acquisition currency. Insiders also sold approximately $4.5 million worth of their own personally held Micron stock at inflated prices during the Class Period.
Name (Stock Symbol)
Micron Technology, Inc. (MU)
Micron Technology, Inc. manufactures semiconductors.
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