Lantronix, Inc.
Company Name | Lantronix, Inc. |
Stock Symbol | LTRX |
Class Period | May 11, 2023 to February 08, 2024 |
Lead Plaintiff Motion Deadline | April 23, 2024 |
On February 8, 2024, Lantronix released its second quarter 2024 financial results and lowered its full-year 2024 guidance by approximately $10 million. The Company attributed the revision to “lower expected sales” as a result of “a general slowdown in [the Company’s] broad-based channel business as customers work through their inventories,” and certain revenues slated for the second half of fiscal 2024 being pushed into 2025.
On this news, Lantronix’s stock price fell $1.89, or 32.5%, to close at $3.92 per share on February 9, 2024, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Lantronix overstated demand and/or its visibility into demand for its IOT products; (2) Lantronix's customers were reducing elevated levels of inventory of IOT products, thereby causing a general slowdown in the Company's business; (3) certain of Lantronix's embedded IOT revenues expected from a customer design win were delayed to the next fiscal year; (4) as a result of all the foregoing, Lantronix anticipated lower sales for its embedded IOT solutions for fiscal year 2024; (5) accordingly, Lantronix was unlikely to meet its own previously issued guidance for fiscal year 2024; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Submit Your Information
If you suffered a loss on your Lantronix, Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.