Semtech Corporation Investors Suffer Losses: Class Action Lawsuit Announced
Los Angeles, CA – March 4, 2025
The Law Offices of Frank R. Cruz, a leading national shareholder rights law firm, announces that investors who suffered losses in Semtech Corporation (“Semtech” or the “Company”) (NASDAQ: SMTC) between February 26, 2020, and February 22, 2023, inclusive (the “Class Period”), have until May 1, 2025, to move for lead plaintiff status in a securities fraud class action lawsuit. The lawsuit alleges that Semtech misrepresented and concealed material information regarding its business, financial condition, and prospects.
Background on Semtech Corporation
Semtech is a leading supplier of high-performance analog and mixed-signal semiconductors used in a variety of applications, including wireless and wired communications, automotive, industrial, and consumer markets. The Company’s products are used in various industries, including telecommunications, computing, consumer electronics, and automotive.
Allegations of Securities Fraud
The lawsuit alleges that Semtech and certain of its executives made false and misleading statements and failed to disclose material information concerning the Company’s business, financial condition, and prospects. Specifically, the complaint alleges that the defendants failed to disclose that:
- Semtech’s revenue growth was decelerating, and the Company was experiencing declining sales in its wireless communications and industrial markets;
- Semtech’s gross margins were under pressure due to increased competition and pricing pressures;
- Semtech was experiencing supply chain issues and had lower-than-expected inventory levels, which would negatively impact its ability to meet customer demand;
- Semtech’s R&D expenses were increasing, putting pressure on its operating margins;
- Semtech’s revenue and earnings guidance for 2023 were lower than analysts’ estimates.
Impact on Semtech Investors
As a result of these alleged false and misleading statements, Semtech investors suffered significant losses. The Company’s stock price declined from a high of $110.95 per share in March 2021 to a low of $60.58 per share in February 2023, representing a loss of over 45% of its value. Many investors who relied on Semtech’s misrepresentations to make investment decisions suffered substantial financial harm.
Impact on the World
The securities fraud allegations against Semtech have far-reaching implications beyond the Company and its investors. The technology sector, particularly the semiconductor industry, is a critical component of the global economy. Semtech’s alleged misrepresentations could undermine investor confidence in the sector, making it more difficult for companies to raise capital and grow. Moreover, the alleged misconduct could discourage innovation and investment in the semiconductor industry, potentially slowing down technological progress and economic growth.
Conclusion
The securities fraud class action lawsuit against Semtech Corporation is an important development for investors and the technology sector as a whole. The allegations of misrepresentations and concealment of material information could have significant consequences for Semtech investors, as well as the broader technology industry. The Law Offices of Frank R. Cruz encourages investors who suffered losses during the Class Period to contact the firm to discuss their legal rights and potential eligibility to be a lead plaintiff in the securities fraud class action lawsuit against Semtech.
Investors who wish to learn more about the Semtech class action lawsuit can visit the law firm’s website or contact The Law Offices of Frank R. Cruz by email at [email protected] or by calling 310-914-5007. The consultation is free, confidential, and without obligation.
The Law Offices of Frank R. Cruz is a leading national shareholder rights law firm that represents investors worldwide. The firm has recovered over a billion dollars for its clients.
