Cases
Qualcomm Incorporated (NASDAQ : QCOM)
Securities Class Action
Overview
Overview
- Date:
- 1/27/2017
- Company Name:
- Qualcomm Incorporated
- Stock Symbol:
- QCOM
- Class Period:
- FROM 2/1/2012 TO 1/19/2017
- Status:
- Closed/Complete
NEW YORK, January 27, 2017 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of California on behalf of all persons or entities who acquired Qualcomm Incorporated (NASDAQ: QCOM) securities between February 1, 2012 and January 17, 2017 (the “Class Period”).
Qualcomm is a global semiconductor company that develops, designs, licenses, and markets worldwide its digital communications products and services, primarily through its two main business segments: Qualcomm CDMA Technologies and Qualcomm Technology Licensing.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Qualcomm engaged in anticompetitive conduct to maintain a monopoly for semiconductors used in mobile phones in violation of federal law; (ii) in turn, Qualcomm lacked effective internal controls over financial reporting; and (iii) as a result, Qualcomm’s public statements were materially false and misleading at all relevant times.
On December 28, 2016, the South Korean Fair Trade Commission fined Qualcomm a record $853 million for violating antitrust laws. After a three-year investigation, the Korean antitrust regulator found that Qualcomm breached antitrust law by limiting competing chip makers’ access to its patents. It also found that the Company forced mobile-phone manufacturers into unfair license agreements by refusing to supply critical phone chips to those that would not accept Qualcomm’s terms. On this news, Qualcomm’s share price fell $1.50, or 2.23%, to close at $65.75 on December 28, 2017.
On January 17, 2017, the U.S. Federal Trade Commission commenced an enforcement action against Qualcomm following an investigation of the Company’s licensing practices. The agency’s complaint, filed in U.S. District Court for the Northern District of California, said that Qualcomm used its dominant position to maintain an illegal monopoly in the market for mobile phone chips. On this news, Qualcomm’s share price fell $2.69, or 4.02%, to close at $64.19 on January 17, 2017.
On January 20, 2017, The Wall Street Journal reported that tech-giant Apple Inc. was suing Qualcomm, alleging that the Company “leveraged its monopoly position as a manufacturer of baseband chips, a critical component used in cellphones, to seek ‘onerous, unreasonable and costly’ terms for patents, and that Qualcomm blocked Apple’s ability to choose another supplier for chipsets.” The article further reported that Apple was seeking $1 billion in rebate payments that Qualcomm allegedly withheld as retribution for Apple’s involvement in an investigation conducted by South Korea’s antitrust regulator. On this news, Qualcomm’s share price fell $1.56, or 2.42%, to close at $62.88 on January 20, 2017.
If you acquired Qualcomm securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
Qualcomm is a global semiconductor company that develops, designs, licenses, and markets worldwide its digital communications products and services, primarily through its two main business segments: Qualcomm CDMA Technologies and Qualcomm Technology Licensing.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Qualcomm engaged in anticompetitive conduct to maintain a monopoly for semiconductors used in mobile phones in violation of federal law; (ii) in turn, Qualcomm lacked effective internal controls over financial reporting; and (iii) as a result, Qualcomm’s public statements were materially false and misleading at all relevant times.
On December 28, 2016, the South Korean Fair Trade Commission fined Qualcomm a record $853 million for violating antitrust laws. After a three-year investigation, the Korean antitrust regulator found that Qualcomm breached antitrust law by limiting competing chip makers’ access to its patents. It also found that the Company forced mobile-phone manufacturers into unfair license agreements by refusing to supply critical phone chips to those that would not accept Qualcomm’s terms. On this news, Qualcomm’s share price fell $1.50, or 2.23%, to close at $65.75 on December 28, 2017.
On January 17, 2017, the U.S. Federal Trade Commission commenced an enforcement action against Qualcomm following an investigation of the Company’s licensing practices. The agency’s complaint, filed in U.S. District Court for the Northern District of California, said that Qualcomm used its dominant position to maintain an illegal monopoly in the market for mobile phone chips. On this news, Qualcomm’s share price fell $2.69, or 4.02%, to close at $64.19 on January 17, 2017.
On January 20, 2017, The Wall Street Journal reported that tech-giant Apple Inc. was suing Qualcomm, alleging that the Company “leveraged its monopoly position as a manufacturer of baseband chips, a critical component used in cellphones, to seek ‘onerous, unreasonable and costly’ terms for patents, and that Qualcomm blocked Apple’s ability to choose another supplier for chipsets.” The article further reported that Apple was seeking $1 billion in rebate payments that Qualcomm allegedly withheld as retribution for Apple’s involvement in an investigation conducted by South Korea’s antitrust regulator. On this news, Qualcomm’s share price fell $1.56, or 2.42%, to close at $62.88 on January 20, 2017.
If you acquired Qualcomm securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.