BOSTON, March 8, 2013 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations involving Maxwell Technologies, Inc. ("Maxwell Technologies" or the "Company") (NASDAQGS: MXWL).
On March 7, 2013, the Company announced that its "audit committee … concluded that the previously issued financial statements … for the year ended December 31, 2011, and all unaudited quarterly reports on Form 10-Q in 2011 and 2012 …, as well its selected financial data for the related periods, should no longer be relied upon because of errors in those financial statements. The errors relate to the timing of recognition of revenue from sales to certain distributors." The audit committee apparently discovered the errors "following receipt of information concerning potential recognition of revenue prior to the satisfaction of certain of the criteria required to be met to recognize revenue."
More specifically, the Company's "investigation discovered arrangements with certain distributors regarding the payment terms for sales to such distributors with respect to certain transactions. … As a result of the arrangements discovered during the investigation, Maxwell does not believe that a fixed or determinable sales price existed at the time of shipment to these distributors, nor was collection reasonably assured, at least with respect to certain transactions. Therefore, the revenue from such sales should not have been recognized at the time of shipment to these distributors." To date, it appears that the restatement of revenues will decrease revenues for fiscal year 2011 by approximately $6.5 million and decrease revenues for the first three quarters of 2012 by an additional $5.5 million.
Block & Leviton's investigation seeks to determine, among other things, whether Maxwell Technologies or its officers and directors have violated the federal securities laws. If you have any information relevant to this investigation, or have questions about your legal rights, please contact Block & Leviton LLP. It appears that the alleged wrongdoing occurred between April 28, 2011 and March 7, 2013.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.
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Contact:
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BLOCK & LEVITON LLP
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Scott Mays, Esq.
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(617) 398-5600
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Scott@blockesq.com
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Jason M. Leviton, Esq.
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(617) 398-5600
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Jason@blockesq.com
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SOURCE Block & Leviton LLP