Investigation begins for Qualcomm

A law office recently began looking into shareholders' claims regarding potential law violations by a telecommunications company. There is a potential for this to become a class action claim in the future.

Law firm Pomerantz, LLP, noted that it started investigating Qualcomm Incorporated, after shareholders alleged that the company violated the Securities Exchange Act of 1934, specifically Sections 10(b) and 20(a). The company had its fiscal second quarter report released on April 23, 2014. Qualcomm noted in this document that the Los Angeles office of the Securities and Exchange Commission sent it a letter that it was in violation of the Foreign Corrupt Practices Act.

A report in Reuters showed that the company planned to alleviate this issue by methods such as "disgorgement of profits, the retention of an independent compliance monitor to review the company's FCPA policies and procedures, an injunction, civil monetary penalties and prejudgment interest."

The company looked into its issues and noted that there were items exchanged with a number of entities including companies and agencies that are owned by the Chinese government. These deals may have been illegal.

When the information came out, the company's stock dropped 3.48 percent – or $2.81 – to $77.90 per share on April 24, 2014.

It is an option for shareholders to discuss these matters with the law firm in order to learn more information. The best way to do this is to speak with Robert Willoughby, who can be reached by telephone or email.

Second investigation underway
Another law firm explained that it would also be seeking answers to shareholder questions regarding the issues related to Qualcomm. Depending on the investigation's outcome, there is a chance for this to also develop into a securities class action lawsuit.

Law office Harwood Feffer, LLP, noted it is looking into the claims against Qualcomm for many of the aforementioned reasons. Not only was the company accused of violating the aforementioned law, but other federal securities law violations may have been violated, as well as a potential breach of fiduciary duty.

For shareholders who are interested in learning about this process, or have questions about how their rights or interests may be affected, speaking with the law office is an option. The best contacts are Robert Harwood and Benjamin Sachs-Michaels, and they can be reached by telephone or email.