A lawsuit was filed on behalf of investors in Silicon Motion Technology Corporation (NASDAQ:SIMO) shares over alleged securities laws violations.

San Diego, CA -- (SBWire) -- 09/12/2023 --The Shareholders Foundation announced that an investor, who purchased shares of Silicon Motion Technology Corporation (NASDAQ: SIMO), filed a lawsuit over alleged violations of Federal Securities Laws by MaxLinear, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Silicon Motion Technology Corporation (NASDAQ: SIMO) have certain options and for certain investors are short and strict deadlines running. Deadline: October 30, 2023. NASDAQ: SIMO investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Hong Kong based Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices.

On May 05, 2022, MaxLinear, Inc. (NASDAQ: MXL) and Silicon Motion (NASDAQGS: SIMO), announced that they have entered into an agreement under which MaxLinear will acquire Silicon Motion in a cash and stock transaction. Each American Depositary Share (ADS) of Silicon Motion, which represents four ordinary shares of Silicon Motion, were to receive $93.54 in cash and 0.388 shares of MaxLinear common stock, for total per ADS consideration of $114.34 (based on MaxLinear's May 4, 2022 closing price).

On July 26, 2023, regulatory approval for the Merger was granted by China's SAMR.

The price of Silicon Motion Technology Corporation ADSs nearly doubled from the prior day's close of $52.20 per ADS to an intraday high of $95.33 per ADS on July 26, 2023.

Near the close of trading on July 26, 2023, however, MaxLinear, Inc shocked the market by announcing in a press release, as described in a Form 8-K filed with the U.S. Securities and Exchange Commission that day, that MaxLinear, Inc was unilaterally terminating the Merger.

Prior to the market's open on July 27, 2023, Silicon Motion Technology Corporation issued a press release repudiating MaxLinear's purported reasons for the termination. In response to the news, between the market open on July 26, 2023 and the market close on July 27, 2023, the price of Silicon Motion Technology Corporation ADSs declined from $94.20 per ADS to $52.51 per ADS, representing a decline of $41.69 per ADS (or 44%).

On August 7, 2023, Silicon Motion Technology Corporation issued another press release in which it categorically rejected MaxLinear's purported termination of the Merger Agreement, and the assertions made by MaxLinear in its notice of July 26, 2023. Silicon Motion Technology Corporation further stated that it would vigorously pursue its remedies and reserved all of its rights under the Merger Agreement and otherwise, including, but not limited to, the right to hold MaxLinear liable for substantial damages.

Shares of Silicon Motion Technology Corporation (NASDAQ: SIMO) declined to $52.01 per share on September 07, 2023.

The plaintiff claims that between June 6, 2023 through July 26, 2023, the defendants failed to disclose that MaxLinear, Inc. had decided it would not consummate the Merger because the economic circumstances surrounding the Merger had materially changed, including a material downturn in the semiconductor industry and rising interest rates, that MaxLinear, Inc. had determined to unilaterally terminate the Merger in the event the Merger was approved by China's State Administration for Market Regulation ("SAMR"), that MaxLinear, Inc. intended to argue that certain conditions in Article 6 of the Agreement and Plan of Merger (the "Merger Agreement") had not been satisfied as required by May 5, 2023 ( i.e., before the class period) as a basis to terminate the Merger, and that as a result, defendants had materially misrepresented the viability of the Merger, the purported benefits of the Merger and the likelihood that the Merger would be consummated.

Those who purchased shares of Silicon Motion Technology Corporation (NASDAQ: SIMO) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.