Micron Technology, Inc.
- Company Name
- Micron Technology, Inc.
- Stock Symbol
- Class Period
- September 26, 2017 to November 19, 2018
- Motion Deadline
- March 24, 2019
- Southern District of New York
The complaint charges Micron and certain of its officers with violations of the Securities Exchange Act of 1934. Micron manufactures and sells memory and storage solutions worldwide, including dynamic random-access memory (“DRAM”) chips widely used in computers and smartphones. Together, Micron, Samsung Electronics (“Samsung”), and SK Hynix (“Hynix”) control as much as 95% of the global market for DRAM chips.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Micron’s business and operations. Specifically, contrary to Micron’s repeated statements during the Class Period that characterized Samsung and Hynix as competitors who could have “cost advantages,” Micron, Samsung and Hynix were engaged in a price-fixing scheme, which could lead to severe sanctions against Micron in China and elsewhere. As a result of this price-fixing scheme being concealed from the market, the price of Micron common stock was artificially inflated to more than $60 per share during the Class Period.
On May 15, 2018, the Chinese State Administration for Market Regulation (“SAMR”) notified Micron that it was investigating potential collusion and other anticompetitive conduct by DRAM suppliers in China. Micron did not announce the SAMR investigation until October 15, 2018, when it filed its annual report on Form 10-K with the SEC for the year ended August 30, 2018. Its disclosure in the Form 10-K was not full and complete, however, because on November 19, 2018, the Financial Times reported that Chinese investigators had “found ‘massive evidence’ of anti-competitive behaviour” by Micron and that Micron, Samsung and Hynix had been engaged in a price-fixing conspiracy. The article further reported that Chinese regulators could impose fines of more than $2.5 billion on each of the three chipmakers. On this news, the price of Micron shares fell nearly 7% to close at $36.83 per share on November 19, 2018.