#United States #San Diego #Class Action #Securities Fraud #Wolfspeed

Investor Alert: Wolfspeed, Inc.

On December 13, 2024, Robbins Geller Rudman & Dowd LLP announced a significant opportunity for investors of Wolfspeed, Inc. (NYSE: WOLF) who have incurred substantial losses. If you purchased or acquired Wolfspeed securities between August 16, 2023, and November 6, 2024, you may have until January 17, 2025, to seek appointment as the lead plaintiff in a proposed class action lawsuit against the company. This important legal action may be pivotal for affected investors seeking restitution for their losses.

Background of the Case

The class action lawsuit, titled Zagami v. Wolfspeed, Inc., No. 24-cv-01395 (N.D.N.Y.), accuses Wolfspeed, along with its executives, of violating the Securities Exchange Act of 1934. The firm alleges that throughout the class period, Wolfspeed communicated misleading information regarding its operational performance and business prospects, thereby misrepresenting the stability and growth potential of their investments to shareholders.

Allegations Against Wolfspeed

The lawsuit specifics include claims that Wolfspeed's optimistic projections concerning the growth of its Mohawk Valley fabrication facility, as well as demand for its 200mm wafers in the electric vehicle (EV) sector, were exaggerated. Reports further insinuate that Wolfspeed overstated both the demand for its essential products and its reliance on certain design developments that had already begun to decline in real growth before hitting financial milestones.

On November 6, 2024, Wolfspeed disclosed its financial results for the first fiscal quarter of 2025. This report revealed troubling news — utilization of the Mohawk Valley facility was only slated to yield revenues of 30% to 50% below the $100 million benchmark previously suggested by Wolfspeed’s executives. The disappointing results were attributed to “demand ramping more slowly than we originally anticipated,” and many investors reacted, resulting in a sharp decline of over 39% in the company’s stock price following the announcement.

Lead Plaintiff Process

The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Wolfspeed securities during the specified period to apply to be appointed as the lead plaintiff in the case. The lead plaintiff has a critical role — they represent the interests of all class members and can select a law firm of their preference to advocate on their behalf. Importantly, sharing in any potential recoveries from the lawsuit does not hinge on serving as the lead plaintiff.

If you believe you qualify to participate in this lawsuit, you can find further information and guidance on applying for lead plaintiff status at Robbins Geller's website. Investors may also contact attorneys J.C. Sanchez or Jennifer N. Caringal directly at 800-449-4900 or via email at [email protected].

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is a renowned law firm specializing in cases of securities fraud. Over the years, they have secured over $6.6 billion in monetary relief for investors and have held a leading position in securities class action recoveries. Their track record includes prominent recoveries such as the largest in history, totaling $7.2 billion in the In re Enron Corp. Securities Litigation.

In conclusion, if you are one of the investors affected by Wolfspeed's substantial losses, time is of the essence. This class action lawsuit could represent your opportunity to seek justice and potentially reclaim your investments. Don’t miss the deadline to step forward as a lead plaintiff — ensure your voice is heard and your interests represented in this significant legal undertaking.