The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Semtech Corporation (“Semtech” or the “Company”) (NASDAQ: SMTC) securities between August 27, 2024 and February 7, 2025, inclusive (the “Class Period”).  Semtech investors have until April 22, 2025 to file a lead plaintiff motion.

What Happened?

On February 7, 2025, after the market closed, Semtech revealed that CopperEdge sales would not “ramp-up over the course of fiscal year 2026.” Based on “feedback from a server rack customer” and “discussions with end users of the server rack platform,” the Company would implement certain “rack architecture changes.” As a result, the Company expected CopperEdge sales to be “lower than the Company’s previously disclosed floor case estimate of $50 million.”

On this news, Semtech’s stock price fell $16.91, or 31%, to close at $37.60 per share on February 10, 2025, on unusually heavy trading volume.

What Is The Lawsuit About?

The complaint filed in this class action 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: (1) that its CopperEdge products did not meet the needs of its server rack customer or end users; (2) that, as a result, the CopperEdge products required certain rack architecture changes; (3) that, as a result of the foregoing, the Company’s sales of CopperEdge products would not ramp-up during fiscal 2026; (4) that, as a result, sales of CopperEdge products would be lower-than-expected; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.