Faruqi & Faruqi Securities LLP partner James (Josh) Wilson encourages investors who have suffered losses exceeding $50,000 at Aehr to contact him directly to discuss their options.
If you suffer losses exceeding $50,000 Ahr Between January 9, 2024 and March 24, 2024 If you would like to discuss your legal rights, contact Farooqui & Farooqui Partner Josh Wilson live in 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, New York–(Newsfile Corp. – December 25, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Aehr Test Systems, Inc. (“Aehr” or the “Company”) (NASDAQ: AEHR) and reminds investors of February 3, 2025 deadline For the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.
Farooqui & Farooqui is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated the federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) contrary to prior representations to investors, Aehr was still experiencing significant delays; In customer orders; (2) the above matter was likely to have a material adverse effect on the Company's revenue growth; (3) accordingly, the Company's business and/or financial projections were overstated; and (4) as a result, the Company's public statements were materially false and misleading at all relevant times.
In October 2023, Aehr provided guidance for its financial results for the full fiscal year 2024. Specifically, the company stated that it expects “total revenues to reach at least $100 million, representing growth of more than 50% year over year(.)”
On January 9, 2024, Aehr lowered its 2024 revenue forecast from $100 million to $75-85 million, citing “delays in the timing of new orders from existing and new customers that will likely impact revenues this fiscal year.” However, the company's CEO, defendant Gene Erickson, was quick to downplay the updated forecast on a related earnings call the same day, claiming that the company “took a very conservative stance in the hope that there was no way we would miss it.” “The bottom line, but I can see scenarios where we could be above the range ($75-$85 million)” and advise investors and analysts that the company has “a very good view” of its customers’ order patterns.
Then, on March 25, 2024, Aehr announced preliminary financial results for the third quarter of 2024. Among other things, the company revealed that its revenue for the third quarter was estimated at approximately $7.6 million, versus a consensus of $14.32 million, citing delays in orders The wafer-level burning system for semiconductor devices used in electric vehicles created a short-term downturn. The gap in revenue and profitability. Additionally, Aehr lowered its 2024 revenue forecast, stating that it now expects revenue of at least $65 million versus a consensus of $77.43 million.
On this news, Aehr's stock price fell $3.29 per share, or 22.44%, to close at $11.37 per share on March 25, 2024.
A court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class and is appropriate and typical for members of the class who direct and oversee litigation on behalf of the putative class. Any member of the putative class may ask the court to serve as lead plaintiff through counsel of their choice, or they may choose to do nothing and remain an absent member of the class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Aehr's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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Lawyer advertisement. The law firm responsible for this announcement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar result with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234564
