Pomerantz LLP announces that a class action lawsuit has been filed against Qualcomm Incorporated (“Qualcomm” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Southern District of California, is on behalf of a class consisting of investors who purchased or otherwise acquired Qualcomm securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
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.