Semtech Corporation (SMTC) Faces Class Action Suit Over Alleged CopperEdge™ Misrepresentations - Hagens Berman

SAN FRANCISCO, Feb. 25, 2025 /PRNewswire/ -- A class action lawsuit has been filed against Semtech Corporation (NASDAQ: SMTC), a prominent high-performance, semiconductor, Internet of Things systems and cloud connectivity service provider, alleging that the company misled investors about the suitability of- and the ramp-up schedule for- its CopperEdge™ product portfolio. The suit, captioned Kleovoulos v. Semtech Corporation, et al., No. 2:25-cv-01474 (C.D. Cal.), represents investors who purchased or acquired Semtech securities between August 27, 2024 and February 7, 2025.

Hagens Berman is investigating the alleged claims and urges investors who purchased Semtech securities and suffered substantial losses to submit your losses now.

Class Period: Aug. 27, 2024 – Feb. 7, 2025
Lead Plaintiff Deadline: Apr. 22, 2025
Visit: www.hbsslaw.com/investor-fraud/smtc
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Semtech Corporation (SMTC) Securities Class Action:

During the Class Period, Semtech has touted its CopperEdge™ products which are intended for use in next generation 400G and 800G data center interconnects using copper cable and backplane interconnects. The company has said "the new CopperEdge portfolio continues to offer valuable solutions that our customers need to meet current and future market demands[.]"

The complaint alleges that Semtech made false and misleading statements, while failing to disclose crucial information. Specifically, the suit contends that its CopperEdge™ products did not meet the needs of its server rack customer or end users. Furthermore, it contends that the CopperEdge™ products required certain rack architecture changes and that, as a result, CopperEdge™ product sales would not (as previously represented) ramp-up during fiscal 2026.

Investors learned the truth on February 7, 2025, when Semtech revealed that CopperEdge™ sales would not "ramp-up over the course of fiscal year 2026." The company blamed this adverse development on "feedback from a server rack customer," "discussions with end users of the server rack platform," and the need for "certain rack architecture changes." As a result, the company expects CopperEdge sales to be "lower than the Company's previously disclosed floor case estimate of $50 million." 

The market reacted swiftly. On February 10, 2025, Semtech's stock price plummeted by over 30%, erasing over $1.4 billion in market capitalization in a single trading day.

"We are concerned that Semtech may have known about- but did not disclose that- there were problems with its CopperEdge™ products, including Nvidia's reported plan to come out with a new processing unit to address heating issues that may be linked to Semtech's products," said Reed Kathrein, the Hagens Berman Partner leading the firm's probe.

If you invested in Semtech and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Semtech case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Semtech should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

SOURCE Hagens Berman Sobol Shapiro LLP