Investors Urged to Act Before Aehr Test Systems Class Action Deadline Approaches

Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently investigating claims against Aehr Test Systems, Inc. (NASDAQ: AEHR), reminding investors of a significant deadline approaching for a federal class action lawsuit. The firm encourages any investors who suffered losses exceeding $50,000 in Aehr between January 9, 2024, and March 24, 2024, to contact them directly for potential legal options.

Overview of the Case

The deadline to apply for the role of lead plaintiff in this class action is February 3, 2025. A lead plaintiff is essentially a person or entity that represents the interests of a larger group of investors in a class action lawsuit. As stated by Josh Wilson, a partner at Faruqi & Faruqi, being an effective lead plaintiff can enhance an individual's or institution's ability to participate in any recovery achieved in the lawsuit.

The class action centers around allegations that Aehr Test Systems and its executives engaged in practices that diluted the company’s value. Specifically, the complaint points out that Aehr breached federal securities laws by making misleading statements regarding its financial status and the timeline of customer orders. Notably, there were substantive delays, which the company did not adequately disclose, adversely affecting its financial outlook.

What Went Wrong at Aehr Test Systems?

In October 2023, Aehr predicted total financial revenue for the year 2024 could reach at least $100 million, representing significant growth of over 50% from the previous year. This optimistic outlook lost its credibility shortly after when, on January 9, 2024, the company adjusted its revenue forecast to between $75-$85 million. The adjustment was due to noticed slowdowns in new customer orders, sparking concerns about the sustainability of the company's revenue growth.

During a subsequent earnings call, Aehr's CEO, Gayn Erickson, termed the downward forecast a