NEW YORK, March 02, 2025 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Semtech Corp. (NASDAQ: SMTC) and certain of the Company’s senior executives for potential violations of the federal securities laws.
If you invested in Semtech, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/semtech-corp.
Investors have until April 22, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Semtech securities. The case is pending in the U.S. District Court for the Central District of California and is captioned Kleovoulos v. Semtech Corporation, et al., No. 25-cv-1474.
Why was Semtech Sued for Securities Fraud?
Semtech is a semiconductor and cloud connectivity service provider. The complaint alleges that during the relevant period, Semtech misrepresented its CopperEdge products’ ability to meet the needs of its service rack customers and that the products required architecture changes.
The Stock Declines as the Truth is Revealed
On February 7, 2025, after market hours, Semtech announced that CopperEdge’s fiscal year 2026 net sales are “expected to be lower” than the company’s $50 million floor case scenario due to rack architecture changes, with no expected ramp-up over the course of fiscal year 2026. Semtech cut its 2026 net sales based on feedback from a server rack customer and discussions with end users of the server rack platform.
This news caused the price of Semtech stock to decline more than 31%, from a closing price of $54.51 per share on February 7, 2025 to $37.60 per share on February 10, 2025, the following trading day. This represented the largest single-day decline for Semtech stock in nearly 40 years.
Click here for more information: https://www.bfalaw.com/cases-investigations/semtech-corp.
What Can You Do?
If you invested in Semtech you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/semtech-corp
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/semtech-corp
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