Investigations
Semtech Corp.
Overview
Overview
- Deadline:
- Apr 22, 2025
| Company Name: | Company Name: Semtech Corp. |
| Stock Symbol: | Stock Symbol: SMTC |
Semtech Corp. (NASDAQ: SMTC): Semtech Corp. (“Semtech” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Semtech securities. The case is pending in the U.S. District Court for the Central District of California and is captioned Kleovoulos v. Semtech Corporation, et al., No. 25-cv-1474.
If you incurred losses on your investments in Semtech, you are encouraged to submit your information.
Why was Semtech Sued for Securities Fraud?
Semtech is a semiconductor and cloud connectivity service provider. The complaint alleges that during the relevant period, Semtech misrepresented its CopperEdge products’ ability to meet the needs of its service rack customers and that the products required architecture changes.
BFA Law is also investigating Semtech’s statements about its partnership with NVIDIA, and how its CopperEdge products “have a well-documented application” with Blackwell racks and pods, and that the company had “invested time” with its customer (NVIDIA) as well as end users of the racks over the past few months. Given this, Semtech “reaffirmed” that it would exceed the company’s “floor case” scenario with respect to net sales from its CopperEdge products.
The Stock Declines as the Truth is Revealed
On February 7, 2025, after market hours, Semtech announced that CopperEdge’s fiscal year 2026 net sales are “expected to be lower” than the company’s $50 million floor case scenario due to rack architecture changes, with no expected ramp-up over the course of fiscal year 2026. Semtech cut its 2026 net sales based on feedback from a server rack customer (apparently NVIDIA) and discussions with end users of the server rack platform.
This news caused the price of Semtech stock to decline more than 31%, from a closing price of $54.51 per share on February 7, 2025 to $37.60 per share on February 10, 2025, the following trading day. This represented the largest single-day decline for Semtech stock in nearly 40 years.
What are my Rights?
If you purchased or otherwise acquired Semtech securities, you may ask the Court no later than April 22, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Semtech, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes
If you incurred losses on your investments in Semtech, you are encouraged to submit your information.
Why was Semtech Sued for Securities Fraud?
Semtech is a semiconductor and cloud connectivity service provider. The complaint alleges that during the relevant period, Semtech misrepresented its CopperEdge products’ ability to meet the needs of its service rack customers and that the products required architecture changes.
BFA Law is also investigating Semtech’s statements about its partnership with NVIDIA, and how its CopperEdge products “have a well-documented application” with Blackwell racks and pods, and that the company had “invested time” with its customer (NVIDIA) as well as end users of the racks over the past few months. Given this, Semtech “reaffirmed” that it would exceed the company’s “floor case” scenario with respect to net sales from its CopperEdge products.
The Stock Declines as the Truth is Revealed
On February 7, 2025, after market hours, Semtech announced that CopperEdge’s fiscal year 2026 net sales are “expected to be lower” than the company’s $50 million floor case scenario due to rack architecture changes, with no expected ramp-up over the course of fiscal year 2026. Semtech cut its 2026 net sales based on feedback from a server rack customer (apparently NVIDIA) and discussions with end users of the server rack platform.
This news caused the price of Semtech stock to decline more than 31%, from a closing price of $54.51 per share on February 7, 2025 to $37.60 per share on February 10, 2025, the following trading day. This represented the largest single-day decline for Semtech stock in nearly 40 years.
What are my Rights?
If you purchased or otherwise acquired Semtech securities, you may ask the Court no later than April 22, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Semtech, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes