NEW YORK, Dec. 9, 2024 -- Pomerantz LLP announces that a class action lawsuit has been filed against Aehr Test Systems, Inc. ("Aehr" or the "Company") (NASDAQ: AEHR) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 24-cv-08683, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Aehr securities between January 9, 2024 and March 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 Aehr securities during the Class Period, you have until February 3, 2025 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 newaction@pomlaw.com 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]
Aehr provides test solutions for testing, burning-in, and semiconductor devices in wafer level, singulated die, and package part form, and installed systems worldwide.
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.
The Complaint alleges that, 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 to investors, Aehr was continuing to experience substantial delays in customer orders; (ii) the foregoing issue was likely to have a material negative impact on the Company's revenue growth; (iii) accordingly, the Company's business and/or financial prospects were overstated; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
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.
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
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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