Glancy Binkow & Goldberg LLP, representing investors of Maxwell Technologies, Inc. (“Maxwell” or the “Company”) (NASDAQ:MXWL), announces that purchasers of Maxwell common stock between April 28, 2011 and March 7, 2013, inclusive (the “Class Period”), have until May 13, 2013 to file a motion with the Court to be appointed as lead plaintiff. The shareholder lawsuit was filed in the United States District Court for the Southern District of California.
Maxwell develops, manufactures and markets energy storage and power delivery products, and microelectronic products worldwide. The Complaint alleges that the defendants issued false and/or misleading statements and/or failed to disclose that: (1) 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) these arrangements had not been communicated to Maxwell's finance and accounting department; (3) as a result, these arrangements had not been considered when recording revenue on shipments to these distributors; (4) a fixed or determinable sales price did not exist at the time of shipment to these distributors; (5) collection was not reasonably assured at the time revenue had been recognized for certain transactions; (6) as a result, the Company was improperly recognizing revenue related to sales transactions to distributors; (7) as such, the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (8) the Company lacked adequate internal and financial controls; and (9), as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.
On March 7, 2013, Maxwell 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.
If you purchased Maxwell common stock during the Class Period, you have until May 13, 2013 to move the Court to serve as lead plaintiff; however, you must meet certain legal requirements. To be a member of the Class you need not take action at this time; you may retain counsel of your choice or take no action and remain an absent Class member. To learn more about this action, or if you have any questions concerning this Notice or 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 firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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