Faruqi & Faruqi, LLP Investigates Potential Claims Against Aehr Test Systems for Investors

Investigation of Aehr Test Systems by Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a prominent firm in the field of securities law, is gearing up to investigate potential claims against Aehr Test Systems, Inc. (NASDAQ: AEHR). The investigation is triggered by concerns that the company and its leadership may have misled investors, specifically regarding the financial outlook that has recently deteriorated.

In a press statement dated December 18, 2024, the firm alerted investors that the deadline to seek the role of lead plaintiff in a federal securities class action is fast approaching on February 3, 2025. Investors who experienced losses exceeding $50,000 from January 9, 2024, to March 24, 2024, are especially encouraged to get in touch with Faruqi & Faruqi. Their representative, Josh Wilson, is available at 877-247-4292 or 212-983-9330, Ext. 1310, to discuss legal rights and possible actions.

The catalyst for this inquiry is a series of concerning announcements made by Aehr. On October 2023, the company projected an optimistic forecast for its fiscal 2024, expecting to achieve a total revenue of at least $100 million, reflecting a growth rate exceeding 50% compared to the previous year. However, a tumultuous start to the year led to a significant revision on January 9, 2024, when Aehr reduced its revenue expectations to between $75 million and $85 million, attributing this decline to delays in customer orders.

To add to the grave situation, during a related earnings call, CEO Gayn Erickson attempted to reassure investors by stating that the revised forecasts were conservative, positing that there was still a chance they could exceed these figures. Despite these reassurances, more disappointment followed.

On March 25, 2024, Aehr disclosed preliminary fiscal Q3 2024 results. The figures fell drastically short of expectations, reporting revenue of approximately $7.6 million against a consensus estimate of $14.32 million. The shortfall was due to delays in receiving orders for critical wafer-level burn-in systems—a significant component used in semiconductor devices, particularly for the electric vehicle sector. Consequently, the revenue forecast was once again slashed, now predicting at least $65 million for the full year, versus prior expectations of $77.43 million.

These events negatively impacted Aehr's stock, which plummeted by $3.29 per share, marking a 22.44% decline on March 25, 2024.

Faruqi & Faruqi's investigation centers around allegations that Aehr's leadership violated federal securities laws by making misleading statements regarding the company's operational stability and financial prospects. The firm holds that these miscommunications could have led investors to make financial decisions based on incomplete or inaccurate information.

The process for becoming a lead plaintiff involves directing and managing the class action lawsuit on behalf of affected investors. While investors can opt to act as lead plaintiffs, participation in the class action is not contingent on this role. Rest assured, whether you choose to engage actively or remain a passive member of the class, your potential to recover losses will not be affected.

Furthermore, Faruqi & Faruqi encourages anyone with relevant information about Aehr's operations or past dealings to step forward. This includes whistleblowers, former employees, or shareholders. Those interested in learning more about the potential class action related to Aehr can visit Faruqi's official website or contact the firm directly.

As the deadline approaches, the legal and financial implications for Aehr investors are becoming increasingly pronounced. Those affected should evaluate their options carefully and consider reaching out to Faruqi & Faruqi to assess possible next steps regarding their investments.

Faruqi & Faruqi, with its long-standing reputation and years of experience in recovering funds for investors, remains a steadfast ally for those navigating this challenging landscape of securities litigation.

For updates and additional information, follow Faruqi & Faruqi on various social media platforms or check their website for ongoing updates.