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STM.US
id: 1319
STMicroelectronics (STM) Sales Issues Case
S.D. New York
Court1:24-cv-06384
Case number25 Jan 2024
Class period Start24 Jul 2024
Class period End22 Oct 2024
Lead Plaintiff motion deadline- $STM stockholders filed a claim against STMicroelectronics for misleading them with overly optimistic revenue forecasts and lacking the insight to support them.
- After the financial results on July 25, 2024, $STM dropped by over 15%.
- STMicroelectronics investors can join this case to be notified about potential recovery.
Case Details:
On April 25, 2024, STMicroelectronics lowered its full-year revenue and margin forecasts, citing a slowdown in automotive demand and a faster decline in the industrial sector. STMicroelectronics' Q1 revenue dropped 18.4% to $3.47 billion.
Moreover, sales to manufacturers decreased by 11.5%, and distribution sales fell by 30.8% compared to the previous year.
On July 25, 2024, STMicroelectronics lowered its Q2 revenue forecast, citing weaker industrial orders and declining automotive demand.
The company now expects FY24 revenue between $13.2 billion and $13.7 billion, with a gross margin of about 40%.
On this news, $STM fell by more than 15%.
Based on these events, $STM investors filed a claim against STMicroelectronics, accusing the company of the following:
- STMicroelectronics misled investors by being overly optimistic about its revenue forecasts and ability to handle industry issues.
- The company also lacked the necessary insight or analysis to back up its optimistic projections.
Considering all the representations, investors suspect STMicroelectronics misled them with overly optimistic revenue forecasts and lacked the insight to support them.
Case Status
Lead Plaintiff Submission
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
25 July 2024
Filing date
23 August 2024
Lead Plaintiff Deadline
22 October 2024