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

Core Viewpoint - A class action lawsuit has been filed against Semtech Corporation, alleging that the company misled investors regarding its CopperEdge product portfolio and its ramp-up schedule [1][2]. Group 1: Lawsuit Details - The lawsuit, titled Kleovoulos v. Semtech Corporation, represents investors who acquired Semtech securities between August 27, 2024, and February 7, 2025 [1][2]. - The complaint claims that Semtech made false and misleading statements about the CopperEdge products, which were intended for next-generation 400G and 800G data center interconnects [2][3]. - It is alleged that the CopperEdge products did not meet the needs of server rack customers and required specific rack architecture changes, impacting sales expectations for fiscal 2026 [2][3]. Group 2: Market Reaction - On February 7, 2025, Semtech disclosed that CopperEdge sales would not ramp up as previously indicated, leading to a significant drop in stock price [3]. - Following this announcement, Semtech's stock price fell by over 30%, resulting in a loss of more than $1.4 billion in market capitalization in one trading day [3]. Group 3: Investigation Insights - Hagens Berman, the law firm investigating the claims, expressed concerns that Semtech may have been aware of issues with its CopperEdge products but failed to disclose them [4]. - The firm is encouraging investors who suffered losses or have relevant information to come forward [4].