NEW YORK, March 30, 2016 /PRNewswire/ -- Faruqi &
Faruqi, LLP, a leading national securities law firm, reminds
investors in Mentor Graphics Corp. ("Mentor Graphics" or the
"Company") (NASDAQ:MENT) of the May 17,
2016 deadline to seek the role of lead plaintiff in a
federal securities class action lawsuit filed against the Company
and certain officers.
The lawsuit has been filed in the U.S. District Court for the
District of Oregon on behalf of
all those who purchased or otherwise acquired the common stock of
Mentor Graphics between August 21,
2014 and November 19, 2015
(the "Class Period"). The case, Haroutunian v. Mentor
Graphics Corp., et al., No. 16-cv-00470 was filed on
March 18, 2016, and has been assigned
to Judge Anna J. Brown.
The lawsuit focuses on whether the Company and its executives
violated federal securities laws by making statements that were
materially false and misleading, as well as failing to disclose the
following facts: (1) Mentor Graphics' customers had announced and
completed an unprecedented number of mergers and acquisitions in
2015 and earlier, resulting in the delaying or declining of
purchases of the Company's products, or demanding price concessions
from the Company; (2) demand for Mentor Graphics' emulation
products had declined as a result of the introduction of
competitive products, notwithstanding Mentor Graphics' assurances
that it would be a "long time" before any competitor could release
a significantly competitive virtual emulation product; (3) early
contract renewals and related bookings that had boosted financial
results had the effect of moving expected bookings and revenue from
future periods (in particular, the second half of FY16) to earlier
periods (the first half of FY16), and were not a sign that demand
was robust and increasing, nor was Mentor Graphics "booked to
capacity" so as to ensure a steady stream of revenue; (4) as a
result, Mentor Graphics lacked a reasonable basis for their
positive statements about the Company, its earnings and
prospects.
Specifically, the lawsuit alleges that on November 19, 2015, Mentor Graphics announced
disappointing financial results for its third quarter of FY16 and
substantially reducing its fourth quarter FY16 financial outlook by
$104 million to $336 million –
instead of $440 million in revenue.
Following the publication of the Company's financial results, the
Wall Street Journal reported on November 19,
2015, in an article entitled "Mentor Graphics Shares Plunge
Amid Lower Forecast, Quarterly Profit," that the Company's stock
price was declining because of the poor third quarter FY16
financial results, lowered guidance and what that revealed about
the Company's performance and prospects.
As a result, share price fell $9.93 per share the next day to close at
$17.85 per share, a 35.75% drop, on
November 20, 2015.
Request more information now by clicking here:
www.faruqilaw.com/MENT . There is no cost or obligation
to you.
Take Action
If you invested in Mentor Graphics common stock between
August 21, 2014 and November 19, 2015 and would like to discuss your
legal rights, visit www.faruqilaw.com/MENT. You can also contact us
by calling Richard Gonnello toll
free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to
rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also
encourages anyone with information regarding Mentor Graphics'
conduct to contact the firm, including whistleblowers, former
employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the
largest financial interest in the relief sought by the class that
is adequate and typical of class members who directs and oversees
the litigation on behalf of the putative class. Any member of the
putative class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and
remain an absent class member. Your ability to share in any
recovery is not affected by the decision of whether or not to serve
as a lead plaintiff.
Attorney Advertising. The law firm responsible for this
advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com).
Prior results do not guarantee or predict a similar outcome with
respect to any future matter. We welcome the opportunity to discuss
your particular case. All communications will be treated in a
confidential manner.
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello,
Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
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