Class Action Lawsuit Vs. MaxLinear by Robbins

Robbins LLP reminds investors of a class action lawsuit vs. MaxLinear, Inc. on behalf of persons or entities that purchased or otherwise acquired American Depository Shares of Silicon Motion Technology Corporation between June 6, 2023 and July 26, 2023, 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 they had entered into a merger agreement pursuant to which MaxLinear would acquire Silicon Motion. However, defendants allegedly failed to disclose that MaxLinear would not consumate 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.