NEW YORK, Aug. 26, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired STMicroelectronics N.V. (“STMicroelectronics” or the “Company”) (NYSE: STM) securities between January 25, 2024 and July 24, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose material adverse facts concerning the true state of STMicroelectronics’ forecasting ability; notably, that STMicroelectronics did not truly have appropriate visibility to generate guidance it put forth, failed to appropriately analyze the visibility it did have, or otherwise STMicroelectronics was simply not equipped to handle the ongoing challenges in its end-market industries as they had projected.
The Complaint alleges that on April 25, 2024, STMicroelectronics announced its first quarter of fiscal year 2024 financial results, disclosing negatively revised full year 2024 revenue and margin projections “‘driven by lower revenues in Automotive and Industrial’” and stating that “‘[d]uring the quarter, Automotive semiconductor demand slowed down compared to our expectations, entering a deceleration phase, while the ongoing Industrial correction accelerated.’” The Complaint further alleges that STMicroelectronics also disclosed an 18.4% decline in first quarter revenue year-over-year, amounting to $3.47 billion, and that net sales to original equipment manufacturers and through distribution channels decreased by 11.5% and 30.8%, respectively, on a year-over-year basis. On this news, the price of STMicroelectronics stock fell.
Investors who purchased or otherwise acquired shares of STMicroelectronics should contact the Firm prior to the October 22, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
