#USA #New York #Class Action #Pomerantz LLP #Aehr Test Systems

Pomerantz LLP's Class Action Against Aehr Test Systems

In a significant legal development, Pomerantz LLP has initiated a class action lawsuit against Aehr Test Systems, Inc., following allegations that the company misled investors regarding its financial forecasts and operational prospects. The lawsuit, which was filed in the United States District Court for the Northern District of California, highlights a series of events that raised red flags for shareholders.

Background and Class Period

The legal action pertains to shareholders who purchased Aehr securities during the class period from January 9, 2024, to March 24, 2024. Investors are seeking damages based on claims that Aehr and its executives made materially false statements about the company’s business performance, particularly its expected revenue growth for the fiscal year.

Revenue Forecast Changes

Originally, in October 2023, Aehr declared a projected revenue of at least $100 million for its fiscal full year 2024, indicating a robust growth outlook of over 50% from the previous year. However, this optimistic forecast faced a drastic reassessment on January 9, 2024, when the company lowered its revenue expectations to between $75 million and $85 million. The reason cited for this cut was delays in order placements from both existing and new clients.

Despite the potentially negative implications of this revised forecast, then CEO Gayn Erickson attempted to mitigate investor concerns during an earnings call by referring to a 'very conservative stance' and expressing optimism that the actual figures could outperform even the lower end of the revised guidance.

Allegations of Misleading Statements

The complaint alleges that during the class period, the company and its executives failed to disclose ongoing issues affecting their operations. Specifically, the lawsuit claims that Aehr was experiencing significant delays in customer orders, which were likely to have an adverse effect on revenue growth—a stark discrepancy from the optimistic narrative shared with investors.

Financial Impacts and Stock Price Decline

On March 25, 2024, Aehr's financial troubles became even more pronounced as the company revealed its estimated revenues for the third quarter, which fell dramatically short of analyst expectations. While the consensus forecast was $14.32 million, Aehr announced an estimated revenue of only $7.6 million, attributing this shortfall to continued order delays, particularly for semiconductor devices utilized in electric vehicles. Following this announcement, Aehr’s stock price plummeted by over 22%, closing at $11.37 per share.

Pomerantz's Role and Appeal for Shareholders

As a leader in securities litigation, Pomerantz LLP has built a reputation for championing the rights of investors affected by corporate malfeasance. The firm has encouraged any shareholders who purchased Aehr securities during the designated period to file their claims by February 3, 2025, in order to be considered for the Lead Plaintiff status in this class action.

For those considering joining the lawsuit, resources and further information can be found at Pomerantz Law Firm’s website. The firm’s attorneys, including Danielle Peyton, are available to assist potential plaintiffs in navigating the legal process associated with the class action.

Conclusion

This class action represents a critical moment for Aehr Test Systems and its investors, who now face the challenges of recovering their financial losses due to alleged misleading statements made by the company. Pomerantz LLP remains steadfast in its mission to hold corporations accountable and protect the interests of shareholders.

For more information or to discuss this action, shareholders can contact Danielle Peyton at Pomerantz LLP directly.