Semtech stock plummets after disappointing sales forecast
- Berger Montague PC announced a securities class action lawsuit against Semtech Corporation for securities purchased between August 27, 2024, and February 7, 2025.
- Semtech revealed a negative sales forecast for its CopperEdge products, leading to a significant drop in stock price.
- Investors have until April 22, 2025, to seek appointment as lead plaintiff in the case.
On April 18, 2025, Berger Montague PC, a law firm based in Philadelphia, informed investors about a securities class action lawsuit against Semtech Corporation, a supplier of semiconductor and connectivity solutions, located in Camarillo, California. The lawsuit covers claims for purchasers of Semtech securities during the specified class period from August 27, 2024, to February 7, 2025. The firm urges investors to act before the deadline of April 22, 2025, to potentially serve as lead plaintiff in the case. The lawsuit stems from a public announcement made by Semtech on February 7, 2025, regarding its CopperEdge products. The company stated during their financial disclosure that it would revise its sales expectations downward due to feedback it received from its customers and discussions with end-users. Originally, Semtech anticipated CopperEdge sales to reach a floor case estimate of $50 million; however, the revised assessment predicted lower performance, which led to significant concern among investors. Following the announcement, Semtech's stock experienced a dramatic decline. On February 10, 2025, the company's share price fell by $16.91, resulting in a 31% drop, and it closed at $37.60 per share. This steep fall in stock value was indicative of investor disappointment regarding the company’s potential earnings from the CopperEdge line, reflecting the market's negative reaction to changing sales forecasts. Berger Montague, established since 1970, has a long-standing history in representing investors in securities class action litigation. The firm outlines the role of lead plaintiffs, who act on behalf of all class members in directing the legal proceedings and selecting counsel. It stresses that while serving as a lead plaintiff can be advantageous, any member of the purported class can choose to engage with the litigation process, either actively or passively. This serves as a critical reminder for investors impacted by the recent downturn in Semtech's stock performance, indicating that they still have options to pursue legal recourse.