Wolfspeed Investors: Opportunities for Leading Class Action Against Major Securities Violations

Class Action Lawsuit Against Wolfspeed, Inc.

In a significant development catering to investors of Wolfspeed, Inc. (NYSE: WOLF), Robbins Geller Rudman & Dowd LLP has opened the doors for those significantly impacted by the company's recent securities violations to potentially lead a class action lawsuit. This opportunity primarily pertains to individuals who acquired Wolfspeed securities between August 16, 2023, and November 6, 2024. The deadline for seeking a lead plaintiff appointment is January 17, 2025.

The class action lawsuit, titled Zagami v. Wolfspeed, Inc., currently filed in the Northern District of New York, takes serious aim at Wolfspeed, along with several top executives, under allegations of breaching the Securities Exchange Act of 1934. This situation arose amid disappointing reports surrounding the company's fabrication facility and overstated claims about product demand and growth potential in the booming electric vehicle market.

Allegations of Misrepresentation

Robbins Geller outlines serious allegations against Wolfspeed that include deception regarding the prospective growth of its Mohawk Valley facility and the anticipated demand for its 200mm wafers specifically aimed for electric vehicle applications. Investors were reportedly misled about the capability and performance of the key facility meant to drive substantial revenue—initially pitched at $100 million per quarter based on only 20% utilization.

Come November 6, 2024, Wolfspeed reported financial results that starkly contradicted prior expectations. The company disclosed that actual utilization was significantly beneath the initially suggested targets. Specifically, it projected that 20% utilization would yield only $75 to $70 million, indicating a substantial shortfall from the promised metrics. This announcement led to a startling 39% decrease in the company's stock price as market analysts and investors reacted to the disappointing reality.

The Role of Lead Plaintiffs

The Private Securities Litigation Reform Act of 1995 empowers any investor who purchased Wolfspeed securities during the outlined class period to step forward as a lead plaintiff in this class-action suit. To qualify, these individuals must exhibit the most significant financial interest in the lawsuit, being a sound representative of the affected group. The lead plaintiff will play a crucial role, guiding the litigation process and making decisions that can affect all group members.

One key aspect is that being a lead plaintiff does not preclude investors from sharing in any possible future recoveries; participation as a lead merely enhances their role in directing proceedings under legal representation of their choice.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP stands as one of the preeminent law firms serving investors in securities fraud cases. With a proven track record spanning numerous complex cases leading to substantial recoveries, the firm has consistently earned top rankings in securing monetary relief for its clients. Over the past decade, it has emerged as a formidable player, recovering a staggering $6.6 billion for investors amidst various securities class action lawsuits.

This firm’s capabilities extend across multiple vital cases, including the landmark Enron securities class action, where they achieved $7.2 billion in recovery—marking it as the largest recovery in the history of securities class actions.

As the landscape of investor rights continues to evolve, updates and new developments will emerge about this ongoing class action against Wolfspeed. Investors wishing to participate or requiring further information can reach out to the attorneys overseeing the case at Robbins Geller by phone or via their dedicated website.

How to Get Involved

Individuals interested in leading or participating in this class-action lawsuit are urged to act promptly to secure their position. Essential information and updates will be critical as key dates approach, solidifying the investor community's united front in addressing these alleged infractions.

For more detailed inquiries, investors may contact J.C. Sanchez or Jennifer N. Caringal at Robbins Geller by calling 800-449-4900 or visiting their firm's webpage dedicated to the Wolfspeed class action lawsuit.