Robbins
Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/rubicon/)
today announced that a class action has been commenced in the United
States District Court for the Northern District of Illinois on behalf of
purchasers of Rubicon Technology, Inc. (“Rubicon”) (NASDAQ:RBCN) common
stock in the Company’s public offering on or about March 19, 2014 (the
“Offering”).
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 djr@rgrdlaw.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/rubicon/.
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 class member.
The complaint charges Rubicon, certain of its officers and directors and
the underwriters of the Offering with violations of the Securities Act
of 1933. Rubicon is a vertically integrated, advanced electronic
materials provider specializing in monocrystalline sapphire, which is
commonly used as a substrate (i.e., base layer) in light emitting
diode (or LED) lighting technology.
On December 6, 2013, Rubicon filed with the SEC an amended shelf
registration statement (the “Form S-3A”), which included a form of
prospectus (the “Prospectus”) authorizing the Company and
to-be-identified “selling stockholders” to sell up to $100,000,000 worth
of shares of Rubicon common stock, at any time, in one or more
offerings. On March 19, 2014, Rubicon filed with the SEC a prospectus
supplement (the “Prospectus Supplement”), offering to register for sale
at $13.00 per share 2.5 million shares of Rubicon common stock (not
including an overallotment of 375,000 shares) by selling shareholder
Cross Atlantic Funds (a group of funds controlled by one of Rubicon’s
directors). The Offering was sold pursuant to the Form S-3A, the
Prospectus and the Prospectus Supplement (jointly referred to herein as
the “Registration Statement”).
The complaint alleges that the Registration Statement contained untrue
statements of material facts, omitted to state other facts necessary to
make the statements made not misleading and was not prepared in
accordance with the rules and regulations governing its preparation.
Specifically, the Registration Statement negligently failed to disclose
material trends, events and uncertainties known to management that were
reasonably expected to have a material impact on the Company’s income
from continuing operations, including the reversal of its trend of
shrinking losses, higher-than-expected development costs and inventory
write-offs due to Rubicon’s inability to sell certain of its wafers
during its 2014 first quarter at prices greater than their cost to
manufacture, causing such inventory to be impaired under applicable
accounting rules and regulations.
Then on May 1, 2014, the Company issued a press release and hosted a
conference call regarding its first quarter of 2014. The Company
reported disappointing financial results and revealed, among other
things, that the trend of shrinking gross losses, operating losses, and
losses per share from the prior quarters had dramatically reversed in
the first quarter of 2014, reporting substantial increases in gross
losses of $7.5 million, losses from operations of $10.9 million, and
losses per share of $0.43. After the earnings call on May 1, 2014, the
price of Rubicon common stock declined by 16%, from about $10 per share
to $8.51 per share, and declined another almost 6% to $8.01 per share on
May 5, 2014. The stock currently trades at below $4.00 per share, a 70%
decline from the Offering price.
Plaintiff seeks to recover damages on behalf of all purchasers of
Rubicon common stock in the Company’s public offering on or about March
19, 2014 (the “Class”). The plaintiff is represented by Robbins Geller,
which has extensive experience in prosecuting investor class actions
including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and
international institutional investors in contingency-based securities
and corporate litigation. The firm has obtained many of the largest
securities class action recoveries in history, including the largest
securities class action judgment. Please visit http://www.rgrdlaw.com
for more information.
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