| Company: | GT Advanced Technologies |
| Ticker Symbol: | GTAT |
| Class Period: | Nov-5-13 to Oct-6-14 |
| Date Filed: | Nov-25-14 |
| Lead Plaintiff Deadline: | Jan-24-15 |
| Court: | District of New Hampshire |
| Allegations: | |
The complaint has been filed on behalf of investors who purchased or otherwise acquired GTAT securities between November 5, 2013 and October 6, 2014, inclusive (the "Class Period").
GTAT produces materials and equipment for the electronics industry. On November 4, 2013, GTAT announced a multiyear supply deal with Apple Inc. to produce sapphire glass material for use in consumer electronics products. Under the deal, Apple would provide GTAT with a prepayment of approximately $578 million paid in four installments and, starting in 2015, GTAT would reimburse Apple for the prepayment over a five-year period.
As alleged in the complaint however, after that announcement Defendants failed to disclose the significant risk that GTAT would be unable to fulfill the requirements of the supply agreement and that another company's material might be used in Apple's new product line. Additionally, GTAT hid from shareholders the fact that, as a result of problems with the Apple deal, GTAT was facing a liquidity crisis. Because of these factors, Defendants' statements about GTAT's business, operations, and prospects, including GTAT's revenue guidance for 2014, were false and misleading and/or lacked a reasonable basis.
When Apple announced the new iPhones did not use GTAT's sapphire glass, shares of GTAT declined $2.29 per share to close at $14.94 per share on September 9, 2014. On October 6, 2014, GTAT announced that it was filing for Chapter 11 bankruptcy; shares of GTAT declined $10.25 per share, nearly 93%, to close at $0.80 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
