ASML Rocked by Securities Lawsuit: Investors Allege Deception Over Financial Woes
Paul Riverbank, 1/9/2025ASML faces securities lawsuit over alleged failure to disclose material information, causing share price plunge and investor losses.
In a stunning revelation, ASML Holding N.V. found itself embroiled in a securities class action lawsuit, with investors alleging that the company failed to disclose material information during the period between January 24, 2024, and October 15, 2024. The lawsuit, filed in the United States District Court for the Southern District of New York, has sent shockwaves through the financial community.
According to the complaint, ASML and certain executives are accused of violating federal securities laws by withholding crucial details about the company's financial performance. The allegations stem from ASML's announcement on October 15, 2024, where it disclosed a staggering 53% decline in quarterly bookings, amounting to a mere €2.63 billion, compared to €5.6 billion in the second quarter of 2024. The company also slashed its full-year 2025 net sales forecast to between €30 billion and €35 billion, a significant reduction from its initial guidance of €30 billion to €40 billion.
As if that wasn't enough, ASML dealt another blow to investors by lowering its gross margin target to a range of 51% to 53%, a far cry from its previous guidance of 54% to 56%. "On this news, the price of ASML's shares plummeted $141.84 per share, or approximately 16.3%, from a close of $872.27 per share on October 14, 2024, to close at $730.43 per share on October 15, 2024," the lawsuit alleges.
The legal action, brought by the City of Hollywood Firefighters' Pension Fund, seeks to represent all investors who purchased ASML shares, call options, or sold put options during the Class Period. Kahn Swick & Foti, LLC, a prominent securities litigation firm, is spearheading the case and urging affected investors to come forward.
"If you purchased shares of ASML as above and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (lewis.kahn@ksfcounsel.com)," the firm stated in a press release.
The lawsuit has sent shockwaves through the investment community, with many questioning the transparency and integrity of ASML's financial reporting. As the legal battle unfolds, all eyes will be on the company's response and the potential ramifications for its shareholders and the broader tech industry.
