asml embroiled in lawsuit over securities fraud allegations
New York, Tuesday, 31 December 2024.
ASML Holding N.V., a major player in the semiconductor industry, is facing a class action lawsuit for alleged securities violations. The lawsuit, filed by multiple law firms including Levi & Korsinsky and Bronstein, Gewirtz & Grossman, claims that ASML misrepresented the severity of supply chain issues and the pace of recovery in semiconductor sales. It also alleges that ASML downplayed risks from macroeconomic factors and export regulations. The class action covers purchases made between January 24, 2024, and October 15, 2024. Investors must act by January 13, 2025, to request lead plaintiff status. This legal action could impact ASML’s financial standing and reputation, as the company is accused of providing misleading information about its business operations.
Stock market impact and valuation concerns
The lawsuit announcement has already affected ASML’s market performance, with the stock closing at $696.15 on December 30, 2024, representing a decline of $17.44 or 2.44% [3]. The company’s market capitalization stands at $273.99 billion [3]. Despite these legal challenges, ASML maintains a strong market position with analysts setting a price target of $961.00, suggesting a potential upside of 38.05% [3].
Legal firms mobilize for investor protection
Multiple prominent law firms have stepped forward to represent affected investors. Levi & Korsinsky, with a track record spanning 20 years and over 70 employees [1][4], is leading the charge alongside Bronstein, Gewirtz & Grossman [2]. These firms are pursuing the case on a contingency fee basis, meaning they will only receive compensation if the lawsuit succeeds [2][4].
Scope of allegations
The lawsuit alleges that ASML misled investors about several critical aspects of its business. The complaints focus on the company’s alleged misrepresentation of supplier issues in the semiconductor industry and downplaying of risks related to export regulations [1][4]. The legal action covers investors who purchased ASML securities during a specific period from January 24, 2024, to October 15, 2024 [1][2].