Legal Proceedings
−Removed: As previously disclosed, U.S.
−Removed: Department of Justice (“DOJ”) commenced an investigation into the Company’s compliance with export control regulations relating to its business transactions with Huawei and its affiliates (“Huawei”), which were added to the “Entity List” by the Department of Commerce (“DOC”) in May 2019.
+Added: As previously disclosed, the DOJ commenced an investigation into the Company’s compliance with export control regulations relating to its business transactions with Huawei and its affiliates (“Huawei”), which were added to the “Entity List” by the DOC in May 2019.
The Company is cooperating fully with federal authorities in the investigation.
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DOC has not informed the Company of any specific timeline or schedule under which DOC will provide a response to the Company’s request.
−Removed: See “Risk Factor-The current government investigation and evolving export control regulations may adversely affect our financial performance and business operations” and footnote 13 to the consolidated financial statements of the Company.
−Removed: On March 19, 2020, Darryl Gray, a stockholder of the Company (the “Plaintiff”), filed a putative class action complaint in the United States District Court for the Southern District of New York (the “Gray Action”), alleging that the Company and its management members made material misstatements or omissions regarding the Company’s business and operations, including its export control practices relating to business transactions with Huawei and its affiliates.
−Removed: The Gray Action asserts claims under Section 10(b) of the Exchange Act against the Company, its Chief Executive Officer and Chief Financial Officer (collectively, the Defendants”), as well as claims under Section 20(a) of the Exchange Act against the Chief Executive Officer and Chief Financial Officer.
−Removed: Among other remedies, the Gray Action seeks to recover compensatory and other damages as well as attorney’s fees and costs.
−Removed: On May 18, 2020, Plaintiff moved for an order appointing him as Lead Plaintiff pursuant to Section 21D of the Exchange Act and approving Glancy Prongay & Murray LLP as Lead Counsel for the putative class (the “Motion”).
−Removed: On July 1, 2020, the Court entered an order granting the Motion and requiring that:
−Removed: (i) Lead Plaintiff file an amended complaint or designate the current complaint as operative within sixty days;
−Removed: (ii) Defendants answer the complaint or otherwise move within sixty days of such filing or designation;
−Removed: (iii) Lead Plaintiff file an opposition, if any, within 45 days;
−Removed: and (iv) Defendants file a reply, if any, forty-five days thereafter.
−Removed: On August 28, 2020, Plaintiff filed an amended complaint asserting the same claims against the Defendants, and adding the Company’s Executive Vice President of Product Line as a defendant on both claims.
−Removed: On October 27, 2020, the Defendants moved to dismiss the action in its entirety.
−Removed: Plaintiff filed his opposition on December 11, 2020 and Defendants filed their reply brief on January 25, 2021.
−Removed: The Company believes the claims in the Gray Action are without merit and intends to vigorously defend this litigation.
We have in the past, and may from time to time in the future, become involved in legal proceedings arising from the normal course of business activities.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.