NEW YORK–(BUSINESS WIRE)–$SMTC #CLASSACTIONLAWSUIT–The law firm of Kirby McInerney LLP announces that it has filed a class action lawsuit in the U.S. District Court for the Central District of California, captioned Wronski v. Semtech Corporation et al., Case No. 2:25-cv-02058, on behalf of all persons and entities who acquired Semtech Corporation (“Semtech” or the “Company”) (NASDAQ:SMTC) securities during the period from August 27, 2024, through February 7, 2025 (“the Class Period”). Investors have until April 22, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On February 7, 2025, Robert W. Baird & Co. cut its price target on Semtech stock from $80 to $60, noting a slower-than-expected uptake of Semtech’s active copper cables, which offer extended reach to allow for high volume switch-to-server connections. The brokerage also noted that it has seen muted Active Copper Cable (“ACC”) benchmarking activity overall as well. On this news, the price of Semtech shares declined by $5.99, from $60.50 per share on February 6, 2025, to close at $54.51 on February 7, 2025.
On February 7, 2025, Semtech filed a Current Report on Form 8-K with the SEC. Therein, Semtech revealed for the first time that for fiscal year 2026, net sales from the Company’s CopperEdge products used in active copper cables “are expected to be lower than the Company’s previously disclosed floor case estimate of $50 million due to rack architecture changes, with no expected ramp-up over the course of fiscal year 2026.” The Company also revealed that the “revised estimates are based on recent feedback from a server rack customer and correlated to discussions with end users of the server rack platform.” That customer was apparently NVIDIA. On this news, the price of Semtech shares fell by $16.91 per share, or approximately 31%, from $54.51 per share on February 7, 2025, to close at $37.60 on February 10, 2025.
The complaint alleges that defendants, throughout the Class Period, has failed to disclose that Semtech’s CopperEdge products suffered from heating issues, which caused NVIDIA to curtail its purchases and develop its own processing unit.
If you purchased or otherwise acquired Semtech securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Lauren Molinaro, Esq.
212-699-1180
https://www.kmllp.com
[email protected]
