Robbins LLP: GT Advanced Technologies Inc. (GTAT) Stock Drops Nearly 93% on Announcement of Bankruptcy
Robbins LLP announces that an investor of GT Advanced Technologies Inc. (NASDAQGS: GTAT) has filed a federal securities fraud class action complaint in the U.S. District Court of New Hampshire. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1933 and Securities Exchange Act of 1934 between November 5, 2013 and October 6, 2014. GT is a technology company that provides materials and equipment for solar, LED, and electronic industries worldwide.
GT Is Accused of Misleading Investors Regarding Its Earnings and Liquidity
The complaint details the potentially lucrative agreement between GT and Apple pursuant to which GT was to operate advanced sapphire crystallization furnaces and related equipment to produce material for sapphire displays. GT Chief Executive Officer Thomas Gutierrez touted this agreement as “a significant milestone in GT’s diversification strategy,” represented his “confidence in the long-term value of this opportunity,” and projected 2015 revenues to nearly double from 2014 levels, due in substantial part to the Apple agreement. According to the complaint, GT repeated these sentiments in its Registration Statement on Form S-3 filed with the U.S. Securities and Exchange Commission pursuant to which it conducted its public offerings, and during earnings calls in the first half of 2014.
The complaint alleges that notwithstanding its reassurances to investors, GT was nearing a liquidity crisis and was unable to meet its milestones under the Apple agreement.
On September 9, 2014, after Apple unveiled the new iPhone 6 and iPhone 6 Plus, which did not include GT’s sapphire material, shares of GT fell $4.37 per share, or over 25%, over a two-day period. Then, on October 6, 2014, GT’s shares plummeted nearly 93% to close at $0.80 per share, after the company announced that it had filed for bankruptcy.
GT Advanced 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, or you can complete the form below and we will contact you directly.