Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Diodes,
NEW YORK -- March 15, 2013
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/diodes/) today announced that a class action has
been commenced on behalf of an institutional investor in the United States
District Court for the Eastern District of Texas on behalf of purchasers of
Diodes, Inc. (“Diodes”) (NASDAQ:DIOD) common stock during the period between
February 9, 2011 and June 9, 2011 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than
60 days from today. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact plaintiff’s
counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at
800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a
member of this class, you can view a copy of the complaint as filed or join
this class action online at http://www.rgrdlaw.com/cases/diodes/. Any member
of the putative class may move the Court to serve as lead plaintiff through
counsel of their choice, or may choose to do nothing and remain an absent
The complaint charges Diodes and certain of its officers and/or directors with
violations of the Securities Exchange Act of 1934. Diodes, together with its
subsidiaries, designs, manufactures and supplies application specific standard
products in the discrete, logic and analog semiconductor markets primarily in
Asia, North America and Europe.
The complaint alleges that, during the Class Period, defendants issued
materially false and misleading statements regarding the Company’s financial
performance and future prospects. Specifically, it alleges that defendants
misrepresented and/or failed to disclose the following adverse facts: (a) that
the Company’s labor problems associated with its backend facility in China
were much more severe and prolonged than publicly represented; (b) that the
Company’s gross margins were being impacted by higher than expected wages and
labor shortages; (c) that the Company was experiencing decreasing demand for
its products, especially from its LED TV and notebook customers; and (d) as a
result of the foregoing, defendants lacked a reasonable basis for their
positive statements about the Company and its prospects.
On June 9, 2011, Diodes updated its financial guidance for the second quarter
of 2011. For the second quarter, the Company maintained its revenue guidance
of $170 to $178 million, but lowered its gross margin guidance to 32.5% plus
or minus 1.5% as compared to its previous guidance of 36.5% plus or minus 1%.
Defendants explained that the Company’s gross margin was “being impacted by a
mix shift due to a softening of demand and the slower than expected recovery
from the previously disclosed manpower shortages at the Company’s packaging
facilities.” In reaction to the announcement, the price of Diodes stock fell
$4.38 per share over the next two trading days, or just over 16%, to close at
$22.98 per share, on heavy trading volume.
On August 9, 2011, Diodes announced its financial results for the second
quarter of 2011, the period ended June 30, 2011. For the quarter, the Company
reported revenue of $169.8 million – below the Company’s guidance – and gross
profit margin of 32.8% – at the low end of the Company’s guidance.
Plaintiff seeks to recover damages on behalf of all purchasers of Diodes
common stock during the Class Period (the “Class”). The plaintiff is
represented by Robbins Geller, which has expertise in prosecuting investor
class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. With nearly 200 lawyers
in nine offices, the firm represents hundreds of public and multi-employer
pension funds with combined assets under management in excess of $2 trillion.
The firm has obtained many of the largest recoveries and has been ranked
number one in the number of shareholder class action recoveries in MSCI’s Top
SCAS 50 every year since 2003. According to Cornerstone Research, the firm’s
recoveries have averaged 35% above the median for all firms over the past
seven years (2005-2011). Please visit http://www.rgrdlaw.com for more
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
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