Semiconductor Manufacturing International Corporation Class Action Lawsuit
- Company Name
- Semiconductor Manufacturing International Corporation
- Stock Symbol
- Class Period
- April 23, 2020 to September 26, 2020
- Motion Deadline
- February 8, 2021
- Central District of California
The Semiconductor Manufacturing International Corporation class action lawsuit charges Semiconductor Manufacturing International Corporation (“SMIC”) and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of SMIC securities between April 23, 2020 and September 26, 2020, inclusive (the “Class Period”). The SMIC class action lawsuit was commenced on December 10, 2020 in the Central District of California and is captioned Wenzel v. Semiconductor Manufacturing International Corporation, No. 20-cv-11219.
SMIC purports to be an investment holding company principally engaged in the computer-aided design, manufacture, testing, packaging, and trading of integrated circuits, as well as the provision of other semiconductor services. SMIC is also involved in the design and manufacture of semiconductor masks and various types of wafers. SMIC distributes its products in China and to overseas markets, including Europe and the United States.
The SMIC class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) there was an “unacceptable risk” that equipment supplied to SMIC would be used for military purposes; (2) SMIC was foreseeably at risk of facing U.S. restrictions; (3) as a result of restrictions by the U.S. Department of Commerce, certain of SMIC’s suppliers would need “difficult-to-obtain” individual export licenses; and (4) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On September 4, 2020, Reuters published an article entitled “EXCLUSIVE-Trump administration weighs blacklisting China's chipmaker SMIC.” As the article detailed, “[a] Pentagon spokeswoman said the Defense Department was working with other agencies to determine whether to make the move against Semiconductor Manufacturing International Corporation, which would force U.S. suppliers to seek a difficult-to-obtain license before shipping to the company.” On this news, the price of SMIC American Depositary Receipts (“ADRs”) fell more than 20%.
Then, on September 26, 2020, Reuters published a second article, entitled “U.S. tightens exports to China’s chipmaker SMIC, citing risk of military use,” which reported that “[t]he United States has imposed restrictions on exports to China’s biggest chip maker SMIC after concluding there is an ‘unacceptable risk’ equipment supplied to it could be used for military purposes.” On this news, the price of SMIC ADRs fell an additional 4.7%, further damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased SMIC securities during the Class Period to seek appointment as lead plaintiff in the SMIC class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the SMIC class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the SMIC class action lawsuit. An investor’s ability to share in any potential future recovery of the SMIC class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the SMIC class action lawsuit or have questions concerning your rights regarding the SMIC class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the SMIC class action lawsuit must be filed with the court no later than February 8, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.