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id: 813, Created by Stan Vick, Scout
MaxLinear & Silicon Motion (SIMO) Terminated M&A Case
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- MaxLinear shocked the market by terminating the $SIMO merger.
- $SIMO declined about 44%, seriously damaging shareholders.
- Investors suspect that MaxLinear engaged in deceptive practices, inflating $SIMO prices while concealing the merger's termination.
On July 26, 2023, regulatory approval for the Merger between MaxiLinear and Silicon Motion was granted by China’s SAMR. On this news, $SIMO nearly doubled from the prior day’s close.
Near the close of the trading day, however, MaxLinear shocked the market by announcing that it was unilaterally terminating the Merger.
On July 27, 2023, Silicon Motion issued a press release repudiating MaxLinear’s purported reasons for the termination.
On this news, between the market open on July 26, 2023, and the market close on July 27, 2023, $SIMO declined about 44%, seriously damaging investors.
- On August 7, 2023, Silicon Motion issued a press release in which it categorically rejected MaxLinear’s purported termination of the Merger agreement and the assertions made by MaxLinear in its notice of July 26, 2023.
- Silicon Motion further stated that it would vigorously pursue its remedies and reserved all of its rights under the merger agreement and otherwise, including the right to hold MaxLinear liable for substantial damages.
In response to this news, $SIMO declined 6%.
Investors have grounds to suspect that MaxLinear may have engaged in deceptive practices, inflating $SIMO ADSs' prices by misrepresenting Silicon Motion's value and prospects while concealing information about the merger's termination.
Shock Event Date
27 July 2023
31 August 2023
Lead Plaintiff Deadline
31 October 2023
Hon. Larry Alan Burns