Semtech Corporation

On February 7, 2025, after the market closed, Semtech revealed that CopperEdge sales would not “ramp-up over the course of fiscal year 2026.” Based on “feedback from a server rack customer” and “discussions with end users of the server rack platform,” the Company would implement certain “rack architecture changes.” As a result, the Company expected CopperEdge sales to be “lower than the Company’s previously disclosed floor case estimate of $50 million.”

On this news, Semtech’s stock price fell $16.91, or 31%, to close at $37.60 per share on February 10, 2025, on unusually heavy trading volume.

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: (1) that its CopperEdge products did not meet the needs of its server rack customer or end users; (2) that, as a result, the CopperEdge products required certain rack architecture changes; (3) that, as a result of the foregoing, the Company’s sales of CopperEdge products would not ramp-up during fiscal 2026; (4) that, as a result, sales of CopperEdge products would be lower-than-expected; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.