SAN DIEGO, Sept. 02, 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 STMicroelectronics N.V. (NYSE: STM) securities between January 25, 2024 and July 24, 2024. STMicroelectronics, together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asian Pacific.
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The Allegations: Robbins LLP is Investigating Allegations that STMicroelectronics N.V. (STM) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants failed to disclose to investors: (i) contrary to prior representations, demand in STMicroelectronics’ automotive and industrial sectors continued to decline in the first half of 2024; (ii) as a result, the Company’s revenues and gross margins also continued to decline during this period; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Plaintiff alleges that on July 25, 2024, STMicroelectronics issued a press release announcing the Company’s Q2 2024 results, including negatively revised FY 2024 revenue and margin projections for the second time within the current fiscal year and stating that “[d]uring the quarter, contrary to our prior expectations, customer orders for Industrial did not improve and Automotive demand declined.” The Company anticipated total revenue for FY 2024 to fall within the range of $13.2 billion to $13.7 billion, a reduction from the already negatively revised forecast of $14 billion to $15 billion, and a gross margin “of about 40%,” a reduction from the already negatively revised forecast of “in the low 40’s.” In addition, STMicroelectronics’ Q2 revenue experienced a 25.3% decline year-over-year, amounting to $3.23 billion, and net sales to OEMs and through distribution channels decreased by 14.9% and 43.7%, respectively, on a year-over-year basis. On this news, STMicroelectronics’ common share price fell $6.07 per share, or 15.35%, to close at $33.47 per share on July 25, 2024.
What Now: You may be eligible to participate in the class action against STMicroelectronics N.V. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by October 22, 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.
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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