ASML investors face class action deadline after stock plunge

ASML investors face class action deadline after stock plunge

2024-12-16 asml

Veldhoven, Monday, 16 December 2024.
ASML Holding N.V. investors have until January 13, 2025, to join a class action lawsuit alleging securities fraud. The lawsuit follows a drastic 16% drop in ASML’s stock price after the company reported disappointing financial results in October 2024. ASML, a major player in the semiconductor industry, is accused of making misleading statements about supplier issues and sales recovery. The lawsuit, filed by the City of Hollywood Firefighters’ Pension Fund, claims investors suffered losses when true details about ASML’s operations were disclosed. Several law firms, including Rosen Law Firm and Robbins Geller Rudman & Dowd LLP, are encouraging affected shareholders to participate. ASML is a key supplier in the semiconductor sector, specializing in photolithography machines. The outcome of this case could significantly impact investor confidence and future stock performance. Plaintiffs can seek appointment as lead in the case through a contingency fee arrangement.

Financial performance decline

ASML’s financial performance deterioration became evident when the company reported quarterly bookings of €2.63 billion, marking a -53.036% decline from €5.6 billion in Q2 2024 [4]. The company also reduced its 2025 net sales forecast to between €30 billion and €35 billion, down from the initial guidance of €30 billion to €40 billion [4]. Adding to investor concerns, ASML lowered its gross margin target to 51-53%, a reduction from the previous 54-56% projection [4].

Market reaction and management response

The market responded severely to these announcements, with ASML’s stock plummeting from $872.27 to $730.43, a 16% drop on October 15, 2024 [1]. The following day, after CFO Roger Dassen attributed the poor performance to slow recovery in traditional semiconductor markets, the stock fell an additional 6.4% to $683.52 [1][6]. CEO Christophe Fouquet further acknowledged that industry recovery would extend well into 2025, resulting in reduced growth and decreased lithography demand [4].

The lawsuit, filed in the U.S. District Court for the Southern District of New York, alleges ASML made misleading statements about supplier issues and downplayed regulatory risks [1][2]. Multiple prominent law firms are representing affected investors, including Robbins Geller Rudman & Dowd LLP, which has recovered $6.6 billion in previous securities-related cases [4]. Investors who purchased shares between January 24 and October 15, 2024, can join the class action without upfront costs through contingency fee arrangements [3].

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investor lawsuit securities fraud