Investors Advised to Connect with Robbins LLP over Class Action Related to Wolfspeed, Inc.

Investors Urged to Contact Robbins LLP Regarding Wolfspeed, Inc. Class Action

Investors who have experienced significant losses in their holdings of Wolfspeed, Inc. (NYSE: WOLF) are encouraged to reach out to Robbins LLP, a law firm specializing in shareholder rights, about a recent class action lawsuit. The lawsuit is on behalf of parties who acquired Wolfspeed securities during a critical period from August 16, 2023, to November 6, 2024. This follows allegations that the company misled stakeholders regarding its revenue projections associated with their production facilities.

Allegations and Background

The class action stems from a complaint asserting that Wolfspeed, primarily involved in semiconductor manufacturing with a focus on silicon carbide materials, had provided overly optimistic revenue forecasts. Specifically, the company had declared that its Mohawk Valley facility would ramp up production to meet heightened demands for its 200mm wafer products. However, it appears that the company was simultaneously concealing essential information about the facility’s operational viability and overall growth potential.

Key concerns were raised regarding potential future project cancellations, specifically the planned facility in Saarland, Germany. Furthermore, it was reported that Wolfspeed might have to reduce its workforce significantly, contemplating layoffs of approximately 20%, and possibly close its Durham fabrication operations altogether.

On November 6, 2024, Wolfspeed disclosed disappointing financial results for the first quarter of its fiscal 2025 and provided guidance for the second quarter that fell well short of market expectations. While previous claims suggested that a mere 20% utilization of the Mohawk Valley facility could yield around $100 million in revenues, the company’s newly revised forecasts indicated that it would likely be 30% to 50% lower than that target. The company justified this downturn by stating that the demand ramp-up had been slower than anticipated as electric vehicle (EV) customers altered their release timelines.

After this announcement, Wolfspeed's stock price plummeted sharply from $13.71 on November 6, 2024, to $8.33 by the following day, reflecting a staggering 39.24% decrease. These developments have raised concerns among investors, leading to the current class action.

Next Steps for Investors

Shareholders who might wish to serve as lead plaintiffs in this class action have until January 17, 2025, to submit their applications to the court. Being a lead plaintiff allows a shareholder to represent other affected members in directing the litigation. It's crucial for investors to note that eligibility for recovery in this case does not necessitate active participation; non-active members can still receive compensation.

Robbins LLP operates on a contingency fee basis, meaning shareholders won’t incur any fees or expenses unless a recovery is achieved. The firm has established itself as a prominent player in the realm of securities class actions, emphasizing its commitment to helping investors regain losses while holding companies accountable for potential wrongdoing.

This firm, since its establishment in 2002, has successfully recovered over $1 billion for shareholders, underlining its robust track record within the shareholder rights litigation space.

About Robbins LLP

Robbins LLP is a respected law firm known for its effective representation in securities class actions and shareholder rights litigation. By focusing on restoring losses and enhancing corporate governance, the firm has built a strong reputation amongst investors seeking justice and accountability from large corporations.

For those affected by the recent developments related to Wolfspeed, Inc., contacting Robbins LLP could be a pivotal step in pursuing recovery of losses. Interested shareholders can find more information by submitting an inquiry form, emailing attorney Aaron Dumas, Jr., or calling the firm directly at (800) 350-6003. Additionally, those who wish to receive updates regarding potential settlements or alerts on corporate executive misconduct can sign up for “Stock Watch.”

As the situation unfolds, affected investors should stay vigilant and consider their options carefully to safeguard their interests in this high-stakes scenario.