| COMPANY |
STMicroelectronics N.V. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
24-cv-06370 |
| JUDGE |
The Hon. Alvin K. Hellerstein |
| CLASS PERIOD |
January 25, 2024 through July 24, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS OCTOBER 22, 2024.
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:
On April 25, 2024, STM announced the company’s first quarter 2024 financial results, and lowered its revenue guidance for the full year of 2024, from a range of $15.9 billion to $16.9 billion, to a range of $14 billion to $15 billion. STM attributed the company’s reduced guidance to slower than expected demand in Automotive semiconductors and the “ongoing Industrial correction.” On this news, the price of STM common stock declined $1.27 per share, or approximately 2.98%, from a close of $42.60 per share on April 25, 2024, to close at $41.33 per share on April 26, 2024.
Then, on July 25, 2024, STM announced the company’s second quarter 2024 financial results, and revealed net revenues of $3.23 billion, which “were above the midpoint” of the company’s forecast for the quarter, due to “higher revenues in Personal Electronics, partially offset by lower than expected revenues in Automotive.” Despite the relatively positive results, STM further lowered its revenue guidance for the full year of 2024, from a range of $14 billion to $15 billion, to a range of $13.2 billion to $13.7 billion. STM asserted that the reduction in guidance was due to “customer orders for Industrial [that] did not improve and Automotive demand [that further] declined.” Moreover, STM revealed that, due to recent demand trends, “it has taken much longer . . . to absorb . . . excess . . . inventory” held by its customers. On this news, the price of STM common stock declined $6.07 per share, or approximately 15.4%, from a close of $39.54 per share on July 24, 2024, to close at $33.47 per share on July 25, 2024.
The complaint alleges that, during 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 misrepresented and/or failed to disclose that: (1) contrary to prior representations, demand in STM’s Automotive and Industrial sectors continued to decline in the first half of 2024, beyond what Defendants had previously assured investors was the trough of the demand trend, causing the company’s revenues and gross margins to decline during this period; and (2) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and 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.