LOS ANGELES, Nov. 18, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Wolfspeed, Inc. ("Wolfspeed" or the "Company") (NYSE: WOLF) investors of a class action representing investors that bought securities between August 16, 2023 and November 6, 2024, inclusive (the "Class Period"). Wolfspeed investors have until January 17, 2025 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Wolfspeed is a semiconductor company specializing in bandgap technologies, focusing on silicon carbide and gallium nitride (GaN). The class action lawsuit against Wolfspeed claims that throughout the class period, the company and its executives made false and/or misleading statements and failed to disclose key facts. The lawsuit alleges that Wolfspeed exaggerated the growth potential of its Mohawk Valley fabrication facility and the demand for its 200mm wafers in the electric vehicle (EV) market. It further asserts that the company overstated demand for its core products and placed undue reliance on projected design wins, while growth at the Mohawk Valley facility had already begun to slow. Wolfspeed had also misrepresented the ability of the facility to achieve $100 million in quarterly revenue at just 20% utilization, and the $2 billion revenue target it had promised appeared unrealistic.
The lawsuit also claims that on November 6, 2024, Wolfspeed announced its financial results for the first quarter of fiscal year 2025, revealing that the actual performance of the Mohawk Valley facility was far below expectations. The 20% utilization of the facility would lead to revenue 30% to 50% lower than the previously projected $100 million. The company attributed the shortfall and lowered guidance to slower-than-expected demand, citing that EV customers were adjusting their launch timelines as the market navigated a transition period. Following this announcement, Wolfspeed's stock price reportedly dropped by more than 39%.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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