| COMPANY |
Semtech Corporation |
| COURT |
United States District Court for the Central District of California |
| CASE NUMBER |
2:25-cv-01474 |
| JUDGE |
The Hon. Mark Christopher Scarsi |
| CLASS PERIOD |
August 27, 2024 through February 7, 2025 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS APRIL 22, 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:
A class action lawsuit was filed on behalf of those who purchased or otherwise acquired Semtech Corporation (“Semtech”) (NASDAQ: SMTC) securities between August 27, 2024, and February 7, 2025, inclusive (the “Class Period”).
Semtech is a semiconductor, digital systems and cloud connectivity service provider. Semtech designs, manufactures, and markets an array of products for commercial applications, the majority of which are sold into the infrastructure, high-end consumer and industrial end markets. Semtech’s portfolio consists of integrated circuits, modules, gateways, routers, and other specialized products. Semtech’s portfolio includes CopperEdge products, which can be used in active copper cables (“ACCs”).
The Class Period begins on August 27, 2024. On that day, Semtech issued a press release announcing its financial results for the quarter ended July 28, 2024. On the same day, Semtech hosted a conference call in connection with its second quarter 2025 financial results wherein Semtech highlighted the success of the company’s CopperEdge products and ACC opportunities.
On November 25, 2024, Semtech issued a press release announcing its financial results for the quarter ended October 27, 2024. On the same day, Semtech provided an investor presentation in connection with the conference call for its third quarter 2025 earnings release. The investor presentation reported the growth of Semtech’s infrastructure end market and “[e]xpect[ed] incrementally higher CopperEdge contribution in Q4’25, followed by a ramp progressing through FY26.”
Then, on February 7, 2025, after market hours, Semtech disclosed that net sales of its CopperEdge products were expected to fall below its prior floor estimate of $50 million in fiscal year 2026 “due to rack architecture changes, with no expected ramp-up over the course of fiscal year 2026,” attributable to “recent feedback from a server rack customer and correlated to discussions with end users of the server rack platform.”
On this news, Semtech’s stock price fell $16.91 per share, or approximately 31%, from a close of $54.51 per share on February 7, 2025, to close at $37.60 on February 10, 2025.
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) Semtech’s CopperEdge products did not meet the needs of its server rack customer or end users; (2) as a result, the CopperEdge products required certain rack architecture changes; (3) as a result of the foregoing, Semtech’s sales of CopperEdge products would not ramp-up during fiscal 2026; (4) as a result, sales of CopperEdge products would be lower-than-expected; and (5) as a result of all of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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.