MaxLinear (MXL) Terminates the Merger with Silicon Motion Technology Corporation (SIMO)
A shareholder filed a class action on behalf of persons or entities that purchased or otherwise acquired American Depository Shares (“ADSs”) of Silicon Motion Technology Corporation (NASDAQ: SIMO) between June 6, 2023 and July 26, 2023. Silicon Motion is a fabless chipmaker that designs, develops, and markets NAND flash controllers for solid-state storage devices.
According to the complaint, on May 5, 2022, MaxLinear and Silicon Motion announced the two companies had entered into a merger agreement pursuant to which MaxLinear would acquire Silicon Motion. However, defendants allegedly failed to disclose that MaxLinear would not consummate the merger because of a material downturn in the semiconductor industry and rising interest rates even if the merger was approved by Chinese regulatory authorities.
On July 26, 2023, near the close of trading, MaxLinear stunned the market, issuing a press release stating it was unilaterally terminating the merger less than a day after Chinese regulatory authorities had approved the combination. In response to this revelation, the price of Silicon Motion ADSs declined by over $41 to $52.51 per ADS.
What Now: Similarly situated shareholders may be eligible to participate in the class action against MaxLinear, Inc. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by October 31, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.