Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Aehr To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $50,000 in Aehr between January 9, 2024 and March 24, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York–(Newsfile Corp. – December 15, 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 the February 3, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm 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 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 continuing to experience substantial delays in customer orders; (2) the foregoing issue was likely to have a material negative impact on the Company’s revenue growth; (3) accordingly, the Company’s business and/or financial prospects 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 fiscal full year 2024 financial results. Specifically, the Company stated that it expected “total revenue to be at least $100 million, representing growth of over 50% year over year[.]”
On January 9, 2024, Aehr cut its 2024 revenue forecast from $100 million to $75-$85 million, citing “a delay in the timing of new orders from current and new customers that will most likely impact this fiscal year’s revenue.” However, the Company’s Chief Executive Officer Defendant Gayn Erickson was quick to downplay the significance of the updated forecast on a related earnings call that same day, claiming that the Company “took a very conservative stance in hopes there’s no way we’ll miss it on the low end, but I can see scenarios where we could be higher than the [$75-$85 million] range” and advising investors and analysts that the Company had “very good visibility” into its customers’ order patterns.
Then, on March 25, 2024, Aehr announced preliminary fiscal Q3 2024 financial results. Among other things, the Company revealed that its Q3 revenue was estimated to be approximately $7.6 million, versus a consensus of $14.32 million, citing delays in wafer level burn-in system orders for semiconductor devices used in electric vehicles that have created a short-term gap in revenue and profitability. In addition, Aehr further cut its 2024 revenue forecast, stating that it now expected 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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
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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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233754
