looming deadline for ASML class action lawsuit approaches
New York, Monday, 16 December 2024.
ASML Holding N.V. faces a crucial deadline with a class action lawsuit hanging over its head. Investors have until January 13, 2025, to join the lawsuit, which accuses ASML of misleading shareholders about the severity of challenges in the semiconductor industry. Allegations point to the company’s failure to disclose significant supplier issues and an overestimated sales recovery pace. On October 15, 2024, ASML reported earnings that fell dramatically short of expectations, triggering a sharp 16% drop in stock price. This has led to a significant loss of investor confidence. The lawsuit, filed by the City of Hollywood Firefighters’ Pension Fund, claims ASML violated federal securities laws, causing substantial financial losses for investors. As the deadline approaches, affected shareholders are encouraged to secure legal representation to potentially recover losses.
Financial impact and market response
ASML’s financial performance has shown significant deterioration in recent months. The company reported quarterly bookings of €2.63 billion, marking a -53.036% decline from €5.6 billion in Q2 2024 [3]. The stock price plummeted from $872.27 to $730.43, followed by another drop to $683.52 after an earnings call [1]. ASML also reduced its 2025 gross margin target to 51-53% from the previous 54-56% [3][4].
Management statements and industry outlook
ASML’s leadership has acknowledged the challenges facing the company. CFO Roger Dassen attributed poor performance to slow recovery in traditional semiconductor markets [4]. CEO Christophe Fouquet indicated that industry recovery will extend well into 2025, leading to reduced growth curves and decreased lithography demand [3]. The company adjusted its 2025 net sales guidance to €30-35 billion, down from the initial €30-40 billion range [3].
Legal proceedings and investor options
Multiple law firms have stepped forward to represent affected investors. Bleichmar Fonti & Auld LLP, which has recovered over $900 million from Tesla’s Board of Directors [1], and Robbins Geller Rudman & Dowd LLP, with $6.6 billion secured in securities-related class actions [3], are among the firms offering representation. The class period covers investors who purchased shares between January 24, 2024, and October 15, 2024 [2][4].