Lowey Dannenberg is investigating Alpha & Omega Semiconductor (“Alpha & Omega” or the “Company”) (NASDAQ: AOSL) and certain of its officers and/or directors for potential violation of federal securities laws or other unlawful business practices in connection with the Company’s business transactions with certain foreign entities. More specifically, Alpha & Omega failed to disclose that the Company’s internal controls and processes were inadequate, such that the Company has engaged in transactions with foreign entities whose activities were deemed contrary to the national security of the United States.
On February 5, 2020, the Company released its second quarter financial results. In its press release published in connection with the financial report, the Company disclosed that the DOJ “recently commenced an investigation into the Company’s compliance with export control regulations relating to certain business transactions with Huawei and its affiliates” and that “[i]n connection with this investigation, [the Department of Commerce] has requested the Company to suspend shipments of its products to Huawei.” As a result, the Company forecasted that its financial performance in the March quarter would be “negatively impacted” by approximately $4 million to $5 million and that the Company will incur additional professional fees in connection with the investigation of $1 million to $2 million. The Company also informed investors that there was no guarantee that the Department of Commerce would permit the Company to resume shipment to Huawei.
Following the Company’s publication of its second quarter financial results, the price of the Company’s shares fell $1.48 per share, or 12%, to close at $10.85 per share on February 6, 2020. The Company shares continue to tumble to this day, closing at $10.65 on February 25, 2020.
If you are a shareholder of Alpha & Omega who suffered a loss, we encourage you to contact attorney Andrea Farah of Lowey Dannenberg at (914) 733-7256 or afarah@lowey.com to learn more about this investigation or to discuss your options. For more information, you can also visit the investigation page on our website, lowey.com/securities.