SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in STMicroelectronics N.V. of Class Action Lawsuit and Upcoming Deadlines - STM
NEW YORK, Oct. 3, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against STMicroelectronics N.V. ("ST" or the "Company") (NYSE: STM) and certain officers. The class action, filed in the United States District Court for the Southern District of New York, and docketed under 24-cv-06384, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired ST securities between January 25, 2024 and July 24, 2024, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired ST securities during the Class Period, you have until October 22, 2024 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
ST, together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The Company serves the automotive, industrial, personal electronics and communications equipment, and computers and peripherals sectors. In the automotive and industrial sectors in particular, ST purports to "address a wide customer base [. . .] with a broad and deep product portfolio."
In the fourth quarter of 2023, as a result of soft automotive demand and declining orders from the industrial sector, ST reported net revenues of $4.28 billion, missing market estimates of $4.30 billion. In a press release announcing these results, ST explained that "[i]n Q4, our customer order bookings decreased compared to Q3. We continued to see stable end-demand in Automotive, no significant increase in Personal Electronics, and further deterioration in Industrial." However, notwithstanding the problems facing the Company's automotive and industrial sectors, ST provided optimistic full year ("FY") 2024 financial guidance. Indeed, in that same press release, ST stated that it would "drive the Company based on a plan for [FY 2024] revenues in the range of $15.9 billion to $16.9 billion" and a "gross margin in the low to mid-40's." Moreover, on an earnings call held to discuss the Company's Q4 and FY 2023 results, ST's Chief Executive Officer Defendant Jean-Marc Chery claimed, in relevant part, that ST "expect[ed] significant sequential revenue growth" in 2024, "driven by a strong rebound in [the] industrial [sector]" and "continued growth in automotive and communication equipment[.]"
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) contrary to prior representations, demand in ST's automotive and industrial sectors continued to decline in the first half of 2024; (ii) as a result, the Company's revenues and gross margins also continued to decline during this period; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.
On April 25, 2024, ST issued a press release announcing the Company's Q1 2024 results, including negatively revised FY 2024 revenue and margin projections "driven by lower revenues in Automotive and Industrial" and stating that "[d]uring the quarter, Automotive semiconductor demand slowed down compared to our expectations, entering a deceleration phase, while the ongoing Industrial correction accelerated." The press release further revealed that the Company anticipated total revenue for FY 2024 to fall within the range of $14 billion to $15 billion, a reduction from the prior forecast of $15.9 billion to $16.9 billion, and a gross margin "in the low 40's," a reduction from the prior forecast of low to mid-40's. In addition, ST's Q1 revenue experienced an 18.4% decline year-over-year, amounting to $3.47 billion, and net sales to original equipment manufacturers ("OEMs") and through distribution channels decreased by 11.5% and 30.8%, respectively, on a year-over-year basis.
On this news, ST's common share price fell $1.26 per share, or 2.96%, to close at $41.24 per share on April 26, 2024.
Then, on July 25, 2024, ST issued a press release announcing the Company's Q2 2024 results, including negatively revised FY 2024 revenue and margin projections for the second time within the current fiscal year and stating that "[d]uring the quarter, contrary to our prior expectations, customer orders for Industrial did not improve and Automotive demand declined." The Company anticipated total revenue for FY 2024 to fall within the range of $13.2 billion to $13.7 billion, a reduction from the already negatively revised forecast of $14 billion to $15 billion, and a gross margin "of about 40%," a reduction from the already negatively revised forecast of "in the low 40's." In addition, ST's Q2 revenue experienced a 25.3% decline year-over-year, amounting to $3.23 billion, and net sales to OEMs and through distribution channels decreased by 14.9% and 43.7%, respectively, on a year-over-year basis.
this news, ST's common share price fell $6.07 per share, or 15.35%, to close at $33.47 per share on July 25, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP
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