Wolfspeed Investors Alert: Opportunity to Lead Class Action Lawsuit

Investors Urged to Join Class Action Against Wolfspeed

Wolfspeed, Inc. (NYSE: WOLF) has been in the spotlight recently as investors who purchased or acquired its securities between August 16, 2023, and November 6, 2024, face substantial losses. The law firm Robbins Geller Rudman & Dowd LLP has announced that these investors have the opportunity to serve as lead plaintiffs in a class action lawsuit concerning the company. This development was reported on December 7, 2024, and urges affected parties to act before the deadline of January 17, 2025.

The lawsuit, known as Zagami v. Wolfspeed, Inc. (No. 24-cv-01395 N.D.N.Y), alleges that Wolfspeed and its executives violated the Securities Exchange Act of 1934. It claims that during the specified class period, the company's executives issued false statements regarding the growth potential of their Mohawk Valley fabrication facility and the demand for Wolfspeed’s 200mm wafers, particularly in the emerging electric vehicle (EV) market.

According to court documents, Wolfspeed's assertions about their facility's output capabilities, which projected revenue figures in the hundreds of millions based on 20% utilization, were found to be greatly exaggerated. The lawsuit highlights that the anticipated demand was not supported by actual results, leading to a significant drop in stock value when reality set in.

On November 6, 2024, Wolfspeed released its financial results for Q1 of the fiscal year 2025, revealing that expected utilization levels were far from achievable. Instead of meeting the optimistic target of $100 million in revenue, the results indicated a much lower figure, with an adjustment of up to 50% below expectations, prompting a drastic 39% decline in stock price. This news suggested that the optimistic projections made earlier had not materialized, as