| COMPANY |
Aehr Test Systems, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
24-cv-08683 |
| JUDGE |
The Hon. Susan Yvonne Illston |
| CLASS PERIOD |
January 9, 2024 through March 24, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS FEBRUARY 3, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
The Class Period begins on January 9, 2024. On that day, Aehr cut its 2024 revenue forecast from $100 million to $75-$85 million, citing “a delay in the timing of new orders from current and new customers that will most likely impact this fiscal year’s revenue.” However, Aehr’s CEO was quick to downplay the significance of the updated forecast on a related earnings call that same day, claiming that Aehr “took a very conservative stance in hopes there’s no way we’ll miss it on the low end, but I can see scenarios where we could be higher than the [$75-$85 million] range.” Aehr’s CEO also touted to investors and analysts that Aehr had “very good visibility” into its customers’ order patterns.
On March 25, 2024, Aehr released its preliminary third quarter fiscal 2024 financial results and revealed that the company expected revenue to be approximately $7.6 million, which significantly missed consensus estimates of $14.3 million. Aehr attributed the poor financial results to delays in wafer level burn-in system orders for semiconductor devices used in electric vehicles that created a short-term gap in revenue and profitability. Moreover, Aehr also lowered its 2024 revenue forecast by approximately $15 million.
On this news, Aehr’s stock price fell $3.29, or 22.4%, to close at $11.37 per share on March 25, 2024.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) contrary to prior representations to investors, Aehr was continuing to experience substantial delays in customer orders; (2) the foregoing issue was likely to have a material negative impact on the company’s revenue growth; (3) accordingly, Aehr’s business and/or financial prospects were overstated; and (4) as a result, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.