asml hit with fraud lawsuit, investors rally for action
Veldhoven, Wednesday, 25 December 2024.
ASML Holding N.V. is at the center of a legal storm, facing a class action lawsuit filed by Bleichmar Fonti & Auld LLP. The lawsuit accuses ASML of misleading investors about the impact of Dutch export controls on its financial performance. The allegations have already had a significant impact, with ASML’s stock price dropping 16% following a disappointing earnings report on October 15, 2024. This marked a decline from $872.27 to $730.43 per share. The situation worsened after an earnings call the following day, where ASML cited declining sales to China, further dropping the stock by 6.4% to $683.52. Investors must decide by January 13, 2025, if they wish to join as lead plaintiffs in the ongoing case. With the stock’s performance under scrutiny and legal proceedings underway, ASML’s future hangs in the balance, capturing the attention of market analysts and investors alike.
Legal claims and timeline
The class action lawsuit, filed on December 23, 2024, in the U.S. District Court for the Southern District of New York [2], alleges violations of federal securities laws between January 24, 2024, and October 15, 2024 [3]. The case, Matar v. ASML Holding N.V. (No. 24-cv-9908) [2], follows a similar complaint filed by the City of Hollywood Firefighters’ Pension Fund [2]. The lawsuit centers on ASML’s alleged misrepresentation regarding Dutch export controls and their impact on the company’s financial outlook [1].
Market impact and financial implications
ASML’s stock has experienced significant volatility, currently trading at $719.71 [4]. The company’s market position as the leading provider of photolithography systems for semiconductor manufacturing [4] makes this legal challenge particularly significant for the tech sector. The disappointing earnings announcement on October 15 revealed that ‘the recovery is more gradual than previously expected’ [1], leading to concerns about ASML’s sales trajectory, particularly in the Chinese market [2].
Legal representation and investor participation
Multiple law firms have joined the legal proceedings, including Bronstein, Gewirtz & Grossman, LLC [3], and Levi & Korsinsky [5]. Investors who purchased ASML shares during the specified period and suffered losses exceeding $100,000 are particularly encouraged to seek legal counsel [5]. The firms are operating on a contingency fee basis, meaning investors face no upfront costs [3]. ASML shareholders have until January 13, 2025, to file for lead plaintiff status [1].