STMicroelectronics is facing a class action lawsuit alleging violations of the Securities Exchange Act of 1934, with a class period spanning from January 25, 2024, to July 24, 2024. The lawsuit claims the company issued false and/or misleading statements and failed to disclose pertinent information to investors.
Specifically, the complaint highlights that STMicroelectronics revised its full-year revenue and margin projections downward twice within the fiscal year. This included a reduction of the 2024 revenue forecast from an initial range of $15.9 billion to $16.9 billion to a revised range of $13.2 billion to $13.7 billion.
The lawsuit also points to the company's second-quarter 2024 financial results, released on July 25, 2024, which showed a 25.3% decline in revenue year-over-year, totaling $3.23 billion. This significant decline and the revised outlook are central to the allegations of misleading investors.
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