SAN FRANCISCO, April 26, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds Mentor Graphics Corporation (NASDAQ:MENT) investors of the May 17, 2016 lead plaintiff deadline in the securities class action lawsuit related to defendants’ statements concerning Mentor’s growth prospects and lack of competition while omitting contrary, then-existing known facts.
If you suffered significant losses because of your purchases of Mentor Graphics stock between August 21, 2014 and November 19, 2015 or have information that will help our investigation contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing MENT@hbsslaw.com or visiting https://www.hbsslaw.com/cases/MENT. The lawsuit was filed in the U.S. District Court for the District of Oregon, Portland Division, and investors have until May 17, 2016 to move the court to participate as a lead plaintiff.
The complaint alleges that Defendants falsely stated and/or omitted that: (1) Mentor’s customers were delaying or declining extended license agreements or demanding price concessions from it due to the unprecedented level of mergers and acquisitions in 2015 and earlier; (2) demand for its emulation products slowed due to the anticipated introduction of competitive products even though defendants asserted a competitive virtual emulation product was not imminent; and, (3) early customer contract renewals and related bookings moved expected bookings and revenue from future periods to earlier periods and were not, as defendants reported, a sign that demand was strong and increasing.
On November 19, 2015, Mentor reduced its fourth quarter fiscal year 2016 outlook by 23% from $440 million in revenue to $336 million. Reasons given included semiconductor consolidation, delays in emulator decisions, and introduction of competitive products. On this news, the Company’s stock price plunged 36%, closing at $17.85 per share, down from the previous day’s close of $27.78 per share.
“Mentor and its senior management touted the Company’s growth prospects and competitive advantage to investors and we’re concerned because there is significant insider selling during this time period and contradictory explanations for the reductions in revenue,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Mentor Graphics Corporation should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email MENT@hbsslaw.com.
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Contact:
Reed Kathrein, 510-725-3000
