| COMPANY |
Wolfspeed, Inc. |
| COURT |
United States District Court for the Northern District of New York |
| CASE NUMBER |
24-cv-01395 |
| JUDGE |
The Hon. Brenda Kay Sannes |
| CLASS PERIOD |
August 16, 2023 through November 6, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS JANUARY 17, 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 August 16, 2023, when Wolfspeed issued its fourth quarter fiscal year 2023 results. On the corresponding earnings call, Wolfspeed touted the purported potential of the company’s Mohawk Valley fabrication facility, and stated that “the main driver of future revenue growth for power devices will be the incremental revenue contribution from Mohawk Valley.” Likewise, Wolfspeed reiterated that “while we are still aligned on previous expectations that we will reach 20% utilization out of Mohawk Valley by the end of fiscal 2024, it is important to note that it will be the second half of the calendar year 2024 before we see $100 million of quarterly revenue from the fab that the 20% utilization would represent.”
Then, on November 6, 2024, Wolfspeed announced its financial results for the first quarter of fiscal year 2025 and lowered its guidance for the second quarter well below expectations. Addressing the poor results and outlook, Wolfspeed revealed that 20% utilization of the company’s Mohawk Valley fabrication facility would result in 30% to 50% below the $100 million mark the company had claimed, attributing the results and lowered guidance to “demand . . . ramp[ing] more slowly than we originally anticipated” as “EV customers revise their launch time lines as the market works through this transition period.” On this news, Wolfspeed’s stock price fell 39%, to close at $8.33 per share on November 7, 2024.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Wolfspeed’s optimistic claims of potential growth of its Mohawk Valley fabrication facility and general demand for Wolfspeed’s 200mm wafers in the electronic vehicle market fell short of reality; and (2) Wolfspeed had overstated demand for its key product and placed undue reliance on purported design wins while the Mohawk Valley facility’s growth had begun to taper before recognizing the $100 million revenue per quarter allegedly achievable with only 20% utilization of the fabrication, let alone the promised $2 billion revenue purportedly achievable by the facility.
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.