GT Advanced Technologies Inc.
|Court:||United States District Court, District of New Hampshire|
|Judge:||Hon. Joseph N. Laplante|
|Class Period:||11/5/2013 – 10/6/2014|
|Case Contacts:||John C. Browne, Lauren McMillen Ormsbee|
This securities class action lawsuit was filed on behalf of Adam S. Levy against certain of the executive officers and directors of GT Advanced Technologies Inc. ("GT" or the "Company"), as well as the underwriters of the Company's public offering of 3.00% Convertible Senior Notes due 2020 and GT's public offering of common stock, both conducted on or around December 4, 2013 (the "Offerings").
The action asserts claims under the Securities Exchange Act of 1934 on behalf of investors in GT securities during the period of November 5, 2013 to 9:40 am EST on October 6, 2014, inclusive (the "Class Period"). The action also asserts claims under the Securities Act of 1933 on behalf of investors that purchased securities pursuant or traceable to the Offerings.
The Complaint, filed on October 9, 2014, alleges that during the Class Period and/or in the offering materials for the Offerings, defendants misrepresented and/or concealed GT's cash position, expected cash position and revenues, ability to meet the milestones under a critical agreement with Apple for the production of sapphire material, and the progress that the Company was making developing the facility that would produce the sapphire material. On October 6, 2014, the Company announced that it was experiencing a liquidity crisis and filed for bankruptcy in the United States Bankruptcy Court for the District of New Hampshire. On this news, the price of GT stock declined from $11.05 per share to $0.80 per share, or almost 93%. Similarly, the price of the Company's 3.00% Convertible Senior Notes due 2020, which had a face value of $1,000 per note, declined from $1,083 per note to $315 per note, or almost 71%.
On May 20, 2015, the Honorable Joseph N. Laplante of the United States District Court for the District of New Hampshire appointed Douglas Kurz as Lead Plaintiff, and BLB&G as Lead Counsel. BLB&G filed a Consolidated Amended Complaint on July 20, 2015, which expanded on the claims alleged in the initial complaint and asserted additional claims against other GTAT executives, as well as securities fraud and control-person claims against Apple. On May 4, 2017, Judge Laplante denied defendants’ motions to dismiss in all material respects, and among other claims, allowed the control-person claims against Apple to proceed.
Settlements with Individual Defendants and Underwriter Defendants
Lead Plaintiff Douglas Kurz and additional named plaintiffs Strategic Master Fund (Cayman) Limited (“Strategic Master Fund”) and Highmark Limited, in respect of its Segregated Account Highmark Fixed Income 2 (“Highmark Limited”) (Highmark Limited and Strategic Master Fund together are the “Securities Act Plaintiffs,” and together with Lead Plaintiff, the “Plaintiffs”) have reached two settlements in this Action: (i) a settlement with the Individual Defendants for $27,000,000 in cash (the “Individual Defendant Settlement”), which resolves all claims brought in the Action on behalf of the Individual Defendant Settlement Class (defined below); and (ii) a settlement with the Underwriter Defendants for $9,700,000 in cash (the “Underwriter Defendant Settlement” and, together with the Individual Defendant Settlement, the “Settlements”), which resolves all claims brought in the Action on behalf of the Underwriter Defendant Settlement Class (defined below). The Settlements do not settle any of the claims asserted against the remaining defendant in the Action, Apple, Inc, which Lead Plaintiff continues to prosecute.
The Individual Defendant Settlement Class consists of:
all persons and entities who or which from November 5, 2013 through 9:40 a.m. Eastern Standard Time on October 6, 2014, inclusive (the “Class Period”) purchased or otherwise acquired publicly traded GTAT common stock (“GTAT Common Stock”) and/or publicly traded GTAT 3.00% Convertible Senior Notes Due 2020 (“GTAT Senior Notes”), purchased or otherwise acquired publicly traded call options on GTAT common stock (“GTAT Call Options”), and/or sold (wrote) publicly traded put options on GTAT common stock (“GTAT Put Options”), and were damaged thereby.
The Underwriter Defendant Settlement Class consists of:
all persons and entities who or which from November 5, 2013 through 9:40 a.m. Eastern Standard Time on October 6, 2014, inclusive (the “Class Period”) purchased or otherwise acquired (i) GTAT Senior Notes pursuant or traceable to GTAT’s December 2013 registration statement and prospectus supplement for the GTAT Senior Notes’ offering (the “Senior Notes Offering”) and/or (ii) shares of GTAT Common Stock pursuant or traceable to GTAT’s December 2013 registration statement and prospectus supplement for the secondary offering of GTAT common stock (the “Common Stock Secondary Offering”).
Following a June 28, 2018 final approval hearing, the Court granted (i) Lead Plaintiff’s motion for final approval of the proposed Settlements and the proposed Plan of Allocation; and (ii) Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of litigation expenses.
More information about the Settlements can be found at: www.GTATSecuritiesLitigation.com.
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