A securities class action has been filed against MaxLinear, Inc. on behalf of investors that purchased American Depository Shares of Silicon Motion Technology Corporation (SIMO) between June 6,2923 through July 26, 2023. This case has been filed in the USDC – S.D.CA.
The Complaint alleges that the Defendants made allegedly false and misleading statements and omissions of material facts related to MaxLinear and Silicon Motion Technology’s previously announced business combination. Specifically, MaxLinear had decided to terminate the merger due to changed economic conditions even if the merger received approval by China’s State Administration for Market Regulation (“SAMR”), intending to argue that certain merger conditions had not been met by a May 5, 2023 deadline.
On July 26, 2023, the SAMR approved the merger, after which the price of Silicon Motion Technology’s ADS’s nearly doubled from the prior day’s closing price. Later that day, MaxLinear announced it was terminating the merger. Silicon Motion Technology ADSs dropped more than 40% in intraday trading on July 27, 2023.