SAN DIEGO, Dec. 03, 2024 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Wolfspeed, Inc. (NYSE: WOLF) securities between August 16, 2023 and November 6, 2024. Wolfspeed is a global semiconductor company focused on silicon carbide materials and the fabrication of devices for power applications.
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The Allegations: Robbins LLP is Investigating Allegations that Wolfspeed, Inc (WOLF) Misled Investors Regarding its Revenue Projections
According to the complaint, defendants provided the public with revenue projections that depended on the Mohawk Valley fabrication facility ramping its production to meet and/or exceed demand for its 200mm wafer product. Defendants provided these overwhelmingly positive statements to investors while, at the same time, concealing material adverse facts concerning the true state of Wolfspeed’s growth potential and, in particular, the operational status and profitability of the Mohawk Valley fabrication facility. First, to meet its publicly stated projections, the Company would have to cancel or otherwise indefinitely suspend planned future projects such as the facility in Saarland, Germany. Second, the Company would have to terminate a significant portion of its workforce (approximately 20%) and shutter the Durham fabrication facility.
Plaintiff alleges that on November 6, 2024, Wolfspeed announced its financial results for the first quarter of fiscal year 2025 and unveiled guidance for the second quarter well below expectations. While defendants had repeatedly claimed that 20% utilization of the Mohawk Valley fabrication facility would result in $100 million revenue out of the facility, defendants now guided to a range 30% to 50% below that mark. The Company attributed its results and lowered guidance to “demand … ramp[ing] more slowly than we originally anticipated” as “EV customers revise their launch time lines as the market works though this transition period.” On this news, Wolfspeed’s stock price fell from $13.71 per share on November 6, 2024, to $8.33 per share on November 7, 2024, a decline of about 39.24%.
What Now: You may be eligible to participate in the class action against Wolfspeed, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by January 17, 2025. 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.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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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