Shareholder rights law firm Robbins Arroyo LLP announces
that a class action complaint was filed against Mentor Graphics
Corporation (NASDAQGS: MENT) in the U.S. District Court for the District
of Oregon, Portland Division. The plaintiff brings the complaint on
behalf of all purchasers of Mentor Graphics securities between August
21, 2014 and November 19, 2015, for alleged violations of the Securities
Exchange Act of 1934 by Mentor Graphics' officers and directors. Mentor
Graphics provides electronic design automation software and hardware
solutions to automate the design, analysis, and testing of
electro-mechanical systems, electronic hardware, and embedded systems
software.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/mentor-graphics-corp
Mentor Graphics Accused of Misrepresenting the Company's Financial
Condition
According to the complaint, during the Class Period, Mentor Graphics
claimed to have substantial visibility into its future financial
results, including revenue and earnings per share, long before the end
of any fiscal year. In particular, the company claimed that its
long-term contracts, significant backlog of orders, and cyclical
business allowed it to make such predictions. Mentor Graphics officials
also emphasized that demand for its emulation and other products was
robust and growing, and that it was currently leveraging that demand to
sign customers to long-term contracts. The company further assured
investors that its differentiated product offerings insulated it from
competitive pricing pressures. On August 20, 2015, Mentor Graphics
reported record financials for the second quarter of 2016, noting that
customer need for increased amounts of software drove early renewal
activity and the upside in the quarter.
The complaint alleges that Mentor Graphics' above representations were
misleading because the company failed to disclose that its customers
were delaying or declining extended license agreements or demanding
price concessions from the company. In addition, demand for Mentor
Graphics' emulation products slowed due to the anticipated introduction
of competitive products, and early contract renewals and related
bookings moved expected bookings and revenue from future periods to
earlier periods and were not a sign that demand was strong and
increasing. Between October 9 and October 12, 2015, Mentor Graphics'
Chief Executive Officer sold 170,000 shares of Mentor Graphics stock at
prices above $25 per share for proceeds of more than $4.3 million. Then,
on November 19, 2015, Mentor issued a press release announcing
disappointing financial results for the third quarter of 2016 and
substantially reducing its fourth quarter 2016 outlook. On November 20,
2015, Mentor stock fell by $9.93 per share, or 36%, closing at $17.85
per share.
Mentor Graphics Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Darnell R. Donahue at
(800) 350-6003, DDonahue@robbinsarroyo.com,
or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
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