Opinion ID: 2366732
Heading Depth: 1
Heading Rank: 3

Heading: Freescale

Text: Freescale Semiconductor, Inc. (Freescale), is a semiconductor designer and manufacturer. In 2006, Blackstone invested $3.1 billion in Freescale, the single largest investment by a Blackstone corporate private equity fund since 2004. The Freescale investment accounted for 9.4% of the Corporate Private Equity segment's assets under management and 3.5% of Blackstone's total assets under management. [5] Shortly before the IPO, in March 2007, Freescale lost an exclusive agreement to manufacture wireless 3G chipsets for its largest customer, Motorola, Inc. (Motorola). The loss of this exclusive agreement followed two years of manufacturing and production problems for Freescale. On April 25, 2007, Freescale's management held an analysts' call, on which it stated that revenue[s] in our wireless business were negatively impacted by a sales decline due to weak demand in our largest customer Motorola. . . . During the last several weeks of the quarter, our main wireless customer began to reduce their orders. Plaintiffs allege that [t]hese adverse facts[ ] had a material adverse effect on Freescale's business and, concomitantly, the material corporate private equity fund controlled by Blackstone. Plaintiffs argue that Blackstone was required to disclose this material adverse development in its Registration Statement.