© Niroworld Dreamstime.com General | March 20, 2019
DRAM at core of class-action suit against UMC
The law firm of Gainey McKenna & Egleston have filed a class action lawsuit against United Microelectronics Corporation (UMC) in the United States District Court for the Southern District of New York on behalf of those who purchased or acquired the securities of UMC in the class period between October 28, 2015 and November 1, 2018.
The suit seeks to “recover damages caused by UMC’s violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder,” according to a press release issued by the firm. As Evertiq and other outlets have reported on previously, at the core of the matter is 2018 indictment involving a 2016 technology cooperation agreement between UMC and Fujian Jianhua Integrated Circuit Co. Ltd that centered on dynamic random-access memory (DRAM) development. One of UMC’s top competitors at the time was Micron Inc., a leading developer of DRAM technology. The indictment alleges that UMC, Fujian, and Chen Zhengkun, a former Micron employee hired by UMC, engaged in conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and economic espionage (receiving and possessing stolen trade secrets). The release also indicates that investors who purchased or otherwise acquired shares during the Class Period should contact Gainey McKenna & Egleston prior to the May 13, 2019 lead plaintiff motion deadline.