Glancy Binkow & Goldberg LLP has filed a class action lawsuit ‘Deerhaven Capital LLC vs Gutierrez et al’ (docketed as 14-cv-00463) in the United States District Court for the District of New Hampshire on behalf of a class comprising purchasers (between 5 November 2013 and 9:40am on 6 October 2014 inclusive) of securities of GT Advanced Technologies Inc of Merrimack, NH, USA (a provider of polysilicon production technology as well as sapphire and silicon crystalline growth systems and materials for the solar, LED and power electronics markets).
The complaint alleges that defendants made false and/or misleading statements and failed to disclose material adverse facts about the company’s operations and financial prospects. Specifically, it is claimed, defendants misled investors that there were significant risks that the firm would be unable to fulfill the requirements of an agreement with Apple Inc to supply sapphire material and that, as a result, the firm was facing a liquidity crisis.
On 9 September, Apple revealed that its new iPhone 6 and iPhone 6 Plus smartphones utilized Corning’s Gorilla Glass for the display instead of GT Advanced’s sapphire material, as investors were expecting. GT Advanced’s share price subsequently fell by nearly 13% ($2.29 per share) to close on 9 September at $14.94 per share.
As of 29 September, GT Advanced had about $85m of cash remaining. On 6 October, the firm said that it was filing for bankruptcy protection under Chapter 11. Shares subsequently fell by nearly 93% ($10.25 per share) to close on 6 October at $0.80 per share.
Members of the class described above may move the court no later than 8 December to serve as lead plaintiff.
