Lantronix (LTRX) Missed Guidance Case

The plaintiff has voluntarily dismissed the case, ending the lawsuit.

C.D. California

Court

8:24-cv-00385

Case number

11/05/2023

Class period Start

08/02/2024

Class period End

04/23/2024

Lead Plaintiff motion deadline

$LTRX stockholder filed a claim vs. Lantronix for overstating demand for its IoT products and IoT solutions.
In February, the guidance cut caused $LTRX to fall 32.5%, losing over $70.8M in shareholder value.

On February 8, 2024, Lantronix (LTRX) reported disappointing Q2’ 2024 results and lowered its full-year sales guidance.

The company stated that the change in annual guidance was due to lower expected sales as a result of two factors:

Slowdown in company’s broad-based channel business as customers work through their inventories, and
Revenue from an embedded compute design win in video applications pushed from fiscal 2024 into fiscal 2025.

On this news, $LTRX declined 32.5% and lost over $70.8 million of its market capitalization, seriously damaging shareholders.

Considering all the representations, investors have reasons to suspect Lantronix of overstating broad-based channel business and embedded compute design win in video applications outcomes, that led to investor losses when revealed.

The first affected investor already filed an initial claim vs. Latronix in C.D. California court.

Case Status

Voluntary Dismissed

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

02/09/2024

Filing date

02/23/2024

Lead Plaintiff Deadline

04/23/2024