SAN DIEGO, March 11, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of all those who purchased or otherwise acquired Lantronix, Inc. (NASDAQ: LTRX) common stock between May 11, 2023 and February 8, 2024. Lantronix is a global industrial and enterprise internet of things (“IoT”) provider of solutions that purportedly target high growth applications in specific verticals such as smart grids, intelligent transportation, smart cities, and artificial intelligence (“AI”) data centers.
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The Allegations: According to the complaint, in May 2023, Lantronix forecasted that it would achieve revenue in a range of $175 million to $185 million, as well as non-GAAP2 earnings-per-share (“EPS”) in a range of $0.50 to $0.60 per share, for its fiscal year 2024 results. During the class period, defendants repeatedly assured investors and analysts that this guidance for fiscal year 2024 remained unchanged, despite knowing that Lantronix’s customers were experiencing elevated levels of inventory for IoT products, and that embedded IoT revenues expected from a customer design win were pushed out to the next fiscal year.
Plaintiff contends that during the class period, defendants failed to disclose that: (i) Lantronix overstated demand and/or its visibility into demand for its IoT products; (ii) Lantronix’s customers were reducing elevated levels of inventory of IoT products, thereby causing a general slowdown in the Company’s business; (iii) certain of Lantronix’s embedded IoT revenues expected from a customer design win were delayed to the next fiscal year; (iv) as a result of the foregoing, Lantronix anticipated lower sales for its embedded IoT solutions for fiscal year 2024; and (v) accordingly, Lantronix was unlikely to meet its own previously issued guidance for fiscal year 2024.
On February 8, 2024, Lantronix issued disappointing financial results for the second quarter of its fiscal year 2024, negatively revising its fiscal year 2024 guidance to expect revenue in a range of $155 million to $165 million and non-GAAP EPS in a range of $0.35 to $0.45 per share. On this news, Lantronix’s stock price fell $1.89 per share, or 32.53%, to close at $3.92 per share on February 9, 2024.
What Now: You may be eligible to participate in the class action against Lantronix, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by April 23, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
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About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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