Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Urges investors who have lost more than $50,000 in Aehr to contact him directly to discuss their options
If you have suffered a loss of more than $50,000 Aehr Between January 9, 2024 and March 24, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi Partner Josh Wilson live on 877-247-4292 or 212-983-9330 (ext. 1310).
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NEW YORK, NY–(Newsfile Corp. – January 19, 2025) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Aehr Test Systems, Inc. (“Aehr” or “Company” “) (NASDAQ: AEHR) and reminds investors Expires February 3, 2025 To seek the role of lead plaintiff in a federal securities class action lawsuit 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 returned hundreds of millions of dollars to investors since its inception 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 continued to experience significant delays; in customer orders; (2) the foregoing matter is likely to have a material adverse effect 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 presented guidance for the financial results of the 2024 fiscal year. Specifically, the company said it expects “total revenue to be at least $100 million, representing more than 50% year-over-year growth.”[.]”
On January 9, 2024, Aehr lowered 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, which is expected to impact revenue this fiscal year.” However, the company’s chief executive, accused Gain Erickson, was quick to play down the significance of the updated forecast on the same day’s earnings, saying the company “took a very conservative position in the hope that we don’t miss it.” Low level, but I can see scenarios where we could be higher than that [$75-$85 million] range” and advised investors and analysts that the company had “very good visibility” into its customers’ order patterns.
Then, on March 25, 2024, Aehr announced preliminary fiscal third quarter 2024 financial results. Among other things, the company revealed that its third-quarter revenue was estimated at about $7.6 million, versus the consensus estimate of $14.32 million, due to a delay in orders for a wafer-level burn-down system for semiconductor devices used in electric vehicles that created a short-term drag on revenue and profitability gap. Additionally, Aehr further lowered its 2024 revenue forecast, saying it now expects revenue of at least $65 million versus the consensus estimate 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.
A court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of class members, who leads and oversees litigation on behalf of the putative class. Any putative class member can apply to the court to become a lead plaintiff through an attorney of their choice, or they can do nothing and remain a class member. Your ability to participate in any recovery will not be affected by the determination of whether or not you are the lead plaintiff.
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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