Semtech Corp Class Action Alert: Legal Action Filed Amidst Stock Decline

NEW YORK, March 10, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been initiated against Semtech Corp (NASDAQ: SMTC) and certain senior executives of the company by the prominent securities law firm Bleichmar Fonti & Auld LLP. The lawsuit addresses potential violations of federal securities laws.

If you have invested in Semtech, you are encouraged to learn more about your options by exploring this link.

Investors have until April 22, 2025, to submit their request to the Court for the opportunity to lead this class action case. The complaint has been filed under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of those who bought Semtech securities during a specified period. This case is currently being handled in the U.S. District Court for the Central District of California, listed as Kleovoulos v. Semtech Corporation, et al., No. 25-cv-1474.

Understanding the Allegations Against Semtech

Semtech is recognized for providing semiconductor solutions and cloud connectivity services. The lawsuit claims that, during the relevant timeframe, Semtech provided misleading information regarding its CopperEdge products. It is alleged that the company misrepresented these products' capability to satisfy the demands of its service rack customers, indicating that they required significant architectural revisions.

Impact on Stock Prices

On February 7, 2025, after the market had closed, Semtech announced expectations that the fiscal year 2026 net sales for its CopperEdge products would fall below the previously stated $50 million floor case scenario, attributing this to necessary architectural alterations, with no anticipated growth for that fiscal year. This announcement was based on insights from a server rack customer and discussions with end-users of the server rack platform.

The market reacted sharply to this news, resulting in a staggering decline of more than 31% in Semtech's stock price. The stock dropped from a closing price of $54.51 per share on February 7, 2025, to just $37.60 per share by the next trading day, February 10, 2025. This marked the largest single-day drop for Semtech's stock in almost 40 years.

Your Legal Options

If you have invested in Semtech, there may be legal avenues available to you. It is advisable to submit your information to Bleichmar Fonti & Auld LLP for evaluation.

Representation will be provided on a contingency fee basis, ensuring no upfront costs to shareholders. Additionally, shareholders will not be liable for any court fees or litigation expenses, with all fees subject to court approval.

To learn more and submit your information, please visit this page.

About Bleichmar Fonti & Auld LLP

Bleichmar Fonti & Auld LLP is a distinguished international law firm that specializes in representing plaintiffs within the realm of securities class actions and shareholder litigation. Recognized as one of the top plaintiff firms, it has garnered awards and accolades including being named among the Top 5 plaintiff law firms by ISS SCAS in 2023. Notably, attorneys at BFA have received honors such as Titans of the Plaintiffs' Bar by Law360 and SuperLawyers by Thompson Reuters. In recent notable cases, BFA has secured over $900 million from Tesla, Inc.'s Board and $420 million from Teva Pharmaceutical Industries Ltd.

For further details about Bleichmar Fonti & Auld LLP, please check their website.

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