Marvell Technology Litigation
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Welcome to the Marvell Technology Litigation Website

This website has been established to provide general information related to the proposed settlement of the lawsuit referred to as Luna v. Marvell Technology Group, Ltd., et al., Case No. 3:15-cv-05447-WHA (the “Litigation”). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated December 19, 2017, which can be found and downloaded by clicking on the Case Documents tab above. 

The Court ordered that the law firm of Robbins Geller Rudman & Dowd LLP represents the Class, including you. These lawyers are called Lead Counsel. You will not be charged for these lawyers. They will be paid from the Settlement Fund to the extent the Court approves their application for fees and expenses. If you want to be represented by your own lawyer, you may hire one at your own expense.

What is this lawsuit about?

Lead Plaintiff brought this Litigation as a securities class action on behalf of purchasers and acquirers of Marvell common stock during the period from February 19, 2015 through December 7, 2015, inclusive, against Marvell and its former Chief Executive Officer Sehat Sutardja (collectively, “Defendants”), alleging that Defendants and Former Defendants violated Section 10(b) of the Exchange Act and that Defendant Sutardja and the Former Defendants violated Section 20(a) of the Exchange Act. Defendants deny these allegations.

On February 8, 2016, the Court appointed Plumbers as lead plaintiff, and its counsel, Robbins Geller Rudman & Dowd LLP (“Robbins Geller”), was appointed lead counsel. ECF No. 53.

Lead Plaintiff alleged that Defendants and the Former Defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Marvell’s business, operations, and prospects, including, among other things, that Marvell reported revenue and earnings during the Class Period that were misleading as a result of undisclosed pull-in sales, and which caused the price of Marvell common stock to be artificially inflated. Following briefing on Defendants’ and the Former Defendants’ motions to dismiss and oral argument, the Court, on October 12, 2016, granted the motions to dismiss with leave to amend. ECF No. 98.

Lead Plaintiff filed the Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws (the “Complaint”) on November 28, 2016. ECF No. 104.

Defendants and the Former Defendants moved to dismiss the Complaint, which the Court granted in part and denied in part. ECF No. 138. More specifically, the Court denied the motions of Marvell and Sutardja, but granted the motions of the Former Defendants. Thereafter, on May 31, 2017, Defendants filed their answers, which denied all claims in the Complaint and asserted certain defenses thereto. ECF Nos. 144, 145.

Thereafter, Lead Plaintiff and Defendants engaged in extensive discovery. Lead Plaintiff pursued documents from Defendants and third parties, resulting in the production of over two million pages of documents. The parties also litigated a discovery dispute involving privilege relating to Marvell’s Audit Committee Investigation. Lead Plaintiff deposed 10 current or former Marvell employees and/or accountants, and, at the time this Settlement was reached, was preparing for 5 additional fact witness depositions. The parties had also exchanged extensive written discovery.

On August 2, 2017, Lead Plaintiff moved to certify the Class, to appoint Plumbers as class representative, and to appoint Robbins Geller as class counsel. ECF No. 160. Briefing on the motion concluded on September 14, 2017, and the Court heard oral argument on October 26, 2017. In connection with class certification, the parties had engaged in significant class discovery, including the depositions of a representative from Plumbers, its economic expert and its investment manager, and preparation and exchange of the reports of experts in market efficiency, damages methodologies, and price impact. The Court granted in part the motion for class certification on October 27, 2017. ECF No. 202.

On December 12, 2017, the parties engaged in an in-person settlement conference before Magistrate Judge Joseph C. Spero, pursuant to an order of the Court. ECF No. 155. The settlement conference was preceded by submission of settlement conference statements and exhibits by each party. The parties engaged in arm’s-length negotiations during the mediation session, and reached an agreement-in-principle to resolve the Litigation on the terms set forth in the Notice of Proposed Settlement of Class Action ("Notice"), and which are subject to approval by the Court.

On December 21, 2017, the Court entered an order preliminarily approving the proposed Settlement, authorizing the mailing of the Notice to potential Class Members, and scheduling the Settlement Hearing to consider whether to grant final approval of the Settlement.

What does the Settlement Provide?

A settlement has been reached in the Litigation between Lead Plaintiff and Defendants, the terms and conditions of which are set forth in the Stipulation and the Exhibits thereto. The following description of the proposed Settlement is only a summary, and reference is made to the text of the Stipulation.

The Settlement Fund consists of Seventy-Two Million Five Hundred Thousand Dollars ($72,500,000.00) in cash, plus any interest earned thereon.

A portion of the Settlement proceeds will be used to pay attorneys’ fees and expenses to Lead Plaintiff’s Counsel, to pay for this Notice and the processing of claims submitted by Class Members, and to pay Taxes and Tax Expenses. The balance of the Settlement Fund (the “Net Settlement Fund”) will be distributed, in accordance with the Plan of Allocation described below, to Class Members who submit valid and timely Proofs of Claim.

The effectiveness of the Settlement is subject to a number of conditions and reference to the Stipulation is made for further particulars regarding these conditions.

Your share of the fund will depend on several things, including how many Class Members submit a timely and valid Proof of Claim, the total dollar amount of the claims represented by the valid Proofs of Claim that Class Members send in, the number of shares of Marvell common stock you purchased or acquired during the Class Period, how much you paid for the shares, when you purchased or acquired them, and if you sold your shares and for how much.

By following the instructions in the Plan of Allocation, you can calculate your claim. It is unlikely that you will get a payment for the full amount of your claim. After all Class Members have sent in their Proofs of Claim, the payment you get will be a part of the Net Settlement Fund equal to your claim divided by the total of all valid claimants’ claims. See the Plan of Allocation on pages 10-12 of the Notice for more information on your claim.

Additional Information

Although the information on this website is intended to assist you, it does not replace the information contained in the Notice and the Stipulation.

Your Legal Rights and Options in This Settlement

SUBMIT A PROOF OF CLAIM POSTMARKED OR SUBMITTED ONLINE BY MAY 7, 2018 This is the only way to be eligible to get a payment from the Settlement. If you wish to participate in the Settlement, you will need to complete and submit the Proof of Claim. Class Members who do not complete and submit the Proof of Claim in accordance with the instructions on the Proof of Claim and do not submit it within the time required will be bound by the Settlement but will not participate in any distribution of the Net Settlement Fund.
EXCLUDE YOURSELF FROM THE CLASS BY SUBMITTING A WRITTEN REQUEST FOR EXCLUSION SO THAT IT IS RECEIVED NO LATER THAN MARCH 27, 2018 You will not be bound by the results of this lawsuit, and you will not receive any payment. This is the only option that allows you to ever be part of any other lawsuit against the Defendants or any other Released Persons about the legal claims related to the issues raised in this Litigation.
OBJECT TO THE SETTLEMENT BY SUBMITTING A WRITTEN OBJECTION SO THAT IT IS RECEIVED NO LATER THAN MARCH 27, 2018 If you believe the Settlement is objectionable in any respect, you may write to the Court about why you oppose the Settlement, the Plan of Allocation, and/or the request for attorneys’ fees and expenses. You will still be a Member of the Class.
ATTEND THE SETTLEMENT HEARING ON APRIL 17, 2018, AT 9:00 A.M., AND PROVIDE A NOTICE OF INTENTION TO APPEAR TO LEAD COUNSEL SO THAT IT IS RECEIVED NO LATER THAN MARCH 27, 2018 The hearing on whether to approve the Settlement is scheduled for April 17, 2018, at 9:00 a.m. (the “Settlement Hearing”), and is open to the public. You do not need to attend the hearing unless you wish to speak either in support of the Settlement or in support of any objection you may have submitted, and have submitted to Lead Counsel a Notice of Intention to Appear so that it is received no later than March 27, 2018. The Court may postpone the Settlement Hearing without prior notice on the date scheduled for the hearing.
DO NOTHING If you are a Class Member and do not submit a Proof of Claim postmarked or submitted online by May 7, 2018, you will not be eligible to receive any payment from the Settlement Fund. You will, however, be bound by the Settlement, unless you have requested exclusion from the Class.