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Cadence Design Systems may have misrepresented its financial condition by overstating revenues.
Investigation Source (Case #08-cv-04966)
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- False And Misleading Statements
Product or Service
- Investments
Injury Type
- Monetary Loss
Investigation Details
This is a securities fraud class action against Cadence Design Systems, Inc.
On October 15, 2008, Cadence Design announced the departures of its Chief Executive Officer and four other senior executives. In response to this surprise announcement, the price of the company's common stock dropped approximately 15%. Merely a week later, on October 22, 2008, Cadence Design stunned investors by acknowledging that Cadence Design was reviewing the recognition of revenue related to customer contracts signed in the first quarter of 2008 and that it expected to restate its financial statements not only for that quarter, but also the first half of 2008.
As a result of these disclosures, Cadence Design's stock price dropped another 25%, as the artificial inflation caused by defendants' false and misleading statements came out of the stock price.
On October 15, 2008, Cadence Design announced the departures of its Chief Executive Officer and four other senior executives. In response to this surprise announcement, the price of the company's common stock dropped approximately 15%. Merely a week later, on October 22, 2008, Cadence Design stunned investors by acknowledging that Cadence Design was reviewing the recognition of revenue related to customer contracts signed in the first quarter of 2008 and that it expected to restate its financial statements not only for that quarter, but also the first half of 2008.
As a result of these disclosures, Cadence Design's stock price dropped another 25%, as the artificial inflation caused by defendants' false and misleading statements came out of the stock price.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Cadence Design Systems, Inc. (CDNS) | Cadence designs software and hardware that allow that aid other companies in the design and testing of advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. |