Glancy Binkow & Goldberg LLP, representing investors of Maxwell Technologies, Inc. (“Maxwell” or the “Company”) (NASDAQ:MXWL), has filed a class action lawsuit in the United States District Court for the Southern District of California on behalf of a class (the “Class”) comprising all purchasers of Maxwell common stock between April 28, 2011 and March 7, 2013, inclusive (the “Class Period”). The Complaint alleges that throughout the Class Period the Company and certain of its executive officers issued false and/or misleading statements or failed to disclose material adverse facts concerning the Company’s business, operations and prospects.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150, Toll-Free at (888) 773-9224, or by email at firstname.lastname@example.org.
Maxwell develops, manufactures, and markets energy storage and power delivery products, and microelectronic products worldwide. Specifically, the Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose: (1) that employees of the Company were making certain arrangements with certain distributors regarding the payment terms for sales to such distributors with respect to certain transactions; (2) that these arrangements had not been communicated to Maxwell's finance and accounting department; (3) that, as a result, these arrangements had not been considered when recording revenue on shipments to these distributors; (4) that a fixed or determinable sales price did not exist at the time of shipment to these distributors; (5) that collection was not reasonably assured at the time revenue had been recognized for certain transactions; (6) that, as a result, the Company was improperly recognizing revenue related to sales transactions to distributors; (7) that, as such, the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (8) that the Company lacked adequate internal and financial controls; and (9) that, as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.
On March 7, 2013, the Company announced that its previously issued financial statements contained in its annual report on Form 10-K for the year ended December 31, 2011, and all unaudited quarterly reports on Form 10-Q in 2011 and 2012, should no longer be relied upon because of errors in those financial statements. According to the Company, the errors relate to the timing of recognition of revenue from sales to certain distributors. The Company further disclosed that “as a result of our investigation, certain employees were terminated and our Sr. Vice President of Sales and Marketing resigned. …”
On this news, the Company’s shares declined $1.01 per share on March 8, 2013, to close at $8.10 per share -- a one-day decline of 11% on unusually heavy trading volume.
No class has yet been certified in this action. To be a member of the Class you need not take any action at this time, or you may retain counsel of your choice. If you purchased Maxwell common stock during the Class Period you have certain rights, and have until May 13, 2013 to move for lead plaintiff status. If you wish to learn more about this action, or have any questions concerning your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to email@example.com, or visit our website at http://www.glancylaw.com.
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