Alpha and Omega Semiconductor Limited (AOSL) Accused of Misleading Shareholders
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between August 7, 2019 and February 5, 2020, in August 2019, Alpha and Omega Semiconductor Limited (AOSL) filed its full year 2019 financial results, reporting revenue of $450.9 million and assuring that “despite the ongoing challenges of current market conditions… is consistently making progress toward calendar 2021 annual revenue target of $600 million.” Later that month, the Company touted its global business model, but failed to disclose that the Company was in violation of several laws and regulations. On February 5, 2020, Alpha and Omega revealed that the U.S. Department of Justice “recently commenced an investigation into the Company’s compliance with export control regulations with Huawei and its affiliates” and went on to disclose that as a result, the Department of Commerce had requested a suspension of its product shipments to Huawei, which would consequently reduce revenue by approximately $4 million to $5 million in the March quarter. On this news, Alpha and Omega’s stock price fell almost 12% to close at $10.85 per share.
