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INVESTOR DEADLINE FRIDAY: Wolfspeed, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit - WOLF

1. Wolfspeed faces a class action lawsuit for misleading growth claims. 2. Allegations include overstating demand for its 200mm wafers and fabrication facility. 3. Stock fell over 39% following disappointing financial results and lowered guidance. 4. Lead plaintiff appointment deadline for investors affected by the lawsuit is January 17, 2025.

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FAQ

Why Very Bearish?

Recent lawsuit and significant stock drop indicate severe investor sentiment loss. The drop mirrors past instances in tech when lawsuits heavily impacted stock prices.

How important is it?

The ongoing lawsuit raises concerns about Wolfspeed's financial health and investor trust. Legal issues typically have a high impact on stock prices, particularly in growth sectors.

Why Short Term?

Immediate effects from the lawsuit and stock drop will be felt quickly. Similar lawsuits previously led to rapid price adjustments in affected stocks.

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WOLF
SAN DIEGO, Jan. 15, 2025 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Wolfspeed, Inc. (NYSE: WOLF) securities between August 16, 2023 and November 6, 2024, both dates inclusive (the "Class Period"), have until this upcoming Friday, January 17, 2025 to seek appointment as lead plaintiff of the Wolfspeed class action lawsuit.  Captioned Zagami v. Wolfspeed, Inc., No. 24-cv-01395 (N.D.N.Y.), the Wolfspeed class action lawsuit charges Wolfspeed as well as certain of Wolfspeed's executives with violations of the Securities Exchange Act of 1934. If you suffered substantial losses and wish to serve as lead plaintiff of the Wolfspeed class action lawsuit, please provide your information here: https://www.rgrdlaw.com/cases-wolfspeed-class-action-lawsuit-wolf.html You can also contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. CASE ALLEGATIONS: Wolfspeed operates as a bandgap semiconductor company that focuses on silicon carbide and gallium nitride (GaN) technologies. The Wolfspeed class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Wolfspeed's optimistic claims of potential growth of its Mohawk Valley fabrication facility and general demand for Wolfspeed's 200mm wafers in the electronic vehicle market fell short of reality; and (ii) Wolfspeed had overstated demand for its key product and placed undue reliance on purported design wins while the Mohawk Valley facility's growth had begun to taper before recognizing the $100 million revenue per quarter allegedly achievable with only 20% utilization of the fabrication, let alone the promised $2 billion revenue purportedly achievable by the facility. The Wolfspeed class action lawsuit further alleges that on November 6, 2024, Wolfspeed announced its financial results for the first quarter of fiscal year 2025, revealing that 20% utilization of the Mohawk Valley fabrication facility would result in 30% to 50% below the $100 million mark defendants had claimed, attributing the results and lowered guidance to "demand . . . ramp[ing] more slowly than we originally anticipated" as "EV customers revise their launch time lines as the market works through this transition period."  On this news, the price of Wolfspeed stock fell more than 39%, according to the complaint. THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Wolfspeed securities during the Class Period to seek appointment as lead plaintiff in the Wolfspeed class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Wolfspeed class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Wolfspeed class action lawsuit.  An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Wolfspeed class action lawsuit. ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud cases.  Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors.  We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years.  With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  Please visit the following page for more information: https://www.rgrdlaw.com/services-litigation-securities-fraud.html Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. Contact: Robbins Geller Rudman & Dowd LLP J.C. Sanchez, Jennifer N. Caringal 655 W. Broadway, Suite 1900, San Diego, CA 92101 800-449-4900 [email protected] SOURCE Robbins Geller Rudman & Dowd LLP

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