Kulicke and Soffa Industries, Inc.
- Company Name
- Kulicke and Soffa Industries, Inc.
- Stock Symbol
- Class Period
- November 16, 2017 to May 10, 2018
- Motion Deadline
- July 10, 2018
- Central District of California
The complaint charges Kulicke and Soffa Industries (“Kulicke”) and certain of the Company’s officers with violations of the Securities Exchange Act of 1934. Kulicke, headquartered in Singapore, designs, manufactures and sells capital equipment and expendable tools to assemble semiconductor devices.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and financial results, including that a senior finance employee had been engaging in unauthorized transactions and that certain warranty accruals in prior periods had been accounted for incorrectly, and, as a consequence, Kulicke’s consolidated financial statements for the fiscal year ending September 30, 2017 could no longer be relied upon. As a result of defendants concealing this information from the investing public, Kulicke securities traded at artificially inflated prices during the Class Period, with the price of its stock reaching a high of close to $28 per share.
Then on May 10, 2018, after the market closed, Kulicke disclosed that it would not be filing its quarterly report on Form 10-Q with the SEC in a timely manner due to its investigation into “certain unauthorized transaction by a senior finance employee of the Company.” The Company also disclosed that during the course of its Investigation into these unauthorized transactions, it had discovered “that certain warranty accruals in prior periods had been accounted for incorrectly and therefore misstated.” According to the Company, its Board of Directors had “determined that [its] previously issued consolidated financial statements for the fiscal year ended September 30, 2017 c[ould] no longer be relied upon due to the misstated warranty accruals made in prior periods.” On this news, the price of Kulicke shares fell $1.80 per share, or over 7%, to close at $21.99 per share on May 11, 2018.