#United States #California #Class Action #Pomerantz LLP #Aehr Test Systems

Shareholder Alert: Aehr Test Systems Class Action Lawsuit

The Pomerantz Law Firm has recently announced a class action lawsuit against Aehr Test Systems, Inc. (NASDAQ: AEHR) which might impact its shareholders significantly. This legal action was initiated in the United States District Court for the Northern District of California and aims to represent individuals and entities, who acquired Aehr securities during the period from January 9, 2024, to March 24, 2024. The aim is to recover losses incurred due to alleged violations of federal securities laws by the company and certain officers.

Background Information

Aehr Test Systems specializes in providing innovative testing solutions for semiconductor devices, a crucial component in modern electronics. As of October 2023, the firm had projected its fiscal 2024 revenues to exceed $100 million, a 50% growth from the previous year, which undoubtedly fostered investor confidence. However, expectations shifted dramatically on January 9, 2024, when Aehr reduced its revenue forecast to between $75-$85 million, citing a concerning delay in receiving new orders from clients. While CEO Gayn Erickson tried to soothe investor anxiety by suggesting a conservative approach, the details presented raised eyebrows.

Details of the Lawsuit

The class action claims that during the aforementioned Class Period, Aehr's executives made misleading statements regarding the company's operational status, thereby artificially inflating the company’s stock prices. Specifically, it is alleged that Aehr's management knew about ongoing delays in customer orders yet failed to fully disclose this information to the public and investors, which ultimately led to a misrepresentation of the company’s revenue prospects.

On March 25, 2024, Aehr announced disappointing preliminary fiscal Q3 results, with revenues dramatically falling to about $7.6 million, far below the anticipated $14.32 million. This stark revelation was attributed to delays in receiving orders for semiconductor devices, particularly those used in electric vehicles, leading to a sharp decline in Aehr's stock price by 22.44% on that day alone. Such drastic changes have prompted the firm to further revise its revenue forecasts, now predicting at least $65 million for 2024.

How Shareholders Can Participate

Shareholders who believe they have been affected by these developments have until February 3, 2025, to file their request for appointment as Lead Plaintiff in this class action. Interested investors are encouraged to reach out to Pomerantz LLP for further information and guidance on their legal rights and options to recover their losses. Contact Danielle Peyton via email or phone for inquiries.

Conclusion

Pomerantz LLP continues to champion for investor rights and seeks to hold Aehr Test Systems accountable for its potential mismanagement and misrepresentation practices. As the legal proceedings unfold, affected shareholders are urged to stay informed and proactive about their investments. With over 85 years of experience, Pomerantz is dedicated to fighting for victims of corporate misconduct, demonstrating a steadfast commitment to ensuring transparency and accountability in the financial markets. For more details about the lawsuit and how to join, visit Pomerantz Law Firm today.