WASHINGTON, Aug. 08, 2023 (GLOBE NEWSWIRE) — Strategic Claims Services, the Commission-approved Fund Administrator in the action brought by the Securities and Exchange Commission against MagnaChip Semiconductor Corporation (“MagnaChip”), and Margaret Hye-Ryoung Sakai, CPA (collectively, the “Respondents”) hereby provides notice to investors who purchased the common stock of MagnaChip during the period from February 1, 2012 through and including February 12, 2015, that they may be eligible for compensation from the Fair Fund established in this action.
Please carefully read the notice below for important information regarding this distribution.
TO: INDIVIDUALS AND ENTITIES OR THEIR LAWFUL SUCCESSORS WHO, DURING THE PERIOD FROM FEBRUARY 1, 2012 THROUGH FEBRUARY 12, 2015, INCLUSIVE (“RELEVANT PERIOD”) PURCHASED THE COMMON STOCK OF MAGNACHIP THAT WAS TRADED UNDER THE SYMBOL MX
On May 1, 2017, the United States Securities and Exchange Commission (“Commission”) issued the Order instituting and simultaneously settling administrative and cease-and-desist proceedings against the Respondents. In the Order, the Commission found that Respondents violated the antifraud, books and records and internal control provisions of the federal securities laws when they began engaging in a variety of practices to inappropriately inflate MagnaChip’s revenues and meet the gross margin targets it previously had announced to the public. The Order required the Respondents to pay $3,134,999.99 in civil money penalties to the Commission so it can be distributed to harmed investors. The Respondents have paid in full.
The Commission established the MagnaChip Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002 (the “MagnaChip Fair Fund”) so that the SEC could distribute the collected civil money penalties.
On May 10, 2023, the Commission approved a plan to distribute the MagnaChip Fair Fund (the “Distribution Plan”). The Distribution Plan is publicly available on the SEC’s webpage for this matter (https://www.sec.gov/litigation/admin/2023/34-97470-dp.pdf) as well as on the public website of the Commission-appointed Fund Administrator (Strategic Claims Services) at www.strategicclaims.net/secvmagnachip.
Eligible Claimants, as defined in the Distribution Plan, include Class Action Authorized Claimants—those who filed an approved claim in the first settlement in the Class Action, Thomas, et al. v. MagnaChip Semiconductor Corp., et al., Case No.: 3:14-cv-01160-JST (N.D. Cal). Class Action Authorized Claimants do not need to submit a Claim Form. However, they may be contacted by the Fund Administrator to provide additional information.
Eligible Claimants will also include Preliminary Claimants, as defined in the Distribution Plan, and Class Action Second Settlement Claimants—those who filed an approved claim only in the second Class Action settlement, whose claim included the period from February 1, 2012 through and including March 11, 2014, and excluded the period from March 12, 2014 through February 12, 2015, inclusive. Preliminary Claimants and Class Action Second Settlement Claimants must submit a Claim Form no later than December 6, 2023, to become Eligible Claimants.
The Fund Administrator will be contacting Preliminary Claimants and Class Action Second Settlement Claimants to request the additional information necessary to evaluate their eligibility for a distribution. These investor groups include investors who opted out of, or filed untimely claims in the Class Action settlements, and investors for whom the Fund Administrator does not have complete investment information. The Fund Administrator will send Claims Packets to these investors requesting the submission of a completed Claim Form (or Personalized Claim Form), supporting documentation, and a completed IRS Form W-9. Investors who receive a Claims Packet should send a complete and timely response to ensure that the Fund Administrator has all the necessary information to consider the investor’s eligibility for a distribution.
Additional information regarding the MagnaChip Fair Fund, including the Distribution Plan and related documents are available on the Fund Administrator’s website, www.strategicclaims.net/secvmagnachip. If you have a question regarding the MagnaChip Fair Fund, the Distribution Plan, or your eligibility for a distribution under the Distribution Plan that is not answered on the website, please contact the Fund Administrator at:
MagnaChip Fair Fund
c/o Strategic Claims Services
P.O. Box 230
600 N. Jackson St., Ste. 205
Media, PA 19063
Toll-free: (866) 274-4004
Fax: (610) 565-7985
Please check the website www.strategicclaims.net/secvmagnachip frequently for updates.