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SMTC.US
id: 1504
Semtech (SMTC) CopperEdge Sales and Revenue Misrepresentation Case
C.D. California
Court2:25-cv-01474
Case number08/27/2024
Class period Start02/07/2025
Class period End04/21/2025
Lead Plaintiff motion deadline- $SMTC investors filed a lawsuit against Semtech Corporation, alleging the company misled shareholders about the demand for its CopperEdge products and its revenue outlook.
- On February 7, 2025, Semtech revealed that CopperEdge sales would be significantly lower than projected. Following this news, $SMTC dropped 31%.
Case Details:
Between August 27, 2024, and February 7, 2025, Semtech assured investors that CopperEdge, its high-speed connectivity product, was seeing strong demand and would ramp up sales throughout fiscal year 2026. The company projected at least $50 million in revenue from CopperEdge and emphasized its role in next-generation data centers.
However, Semtech failed to disclose critical issues with CopperEdge’s adoption. By early 2025, a major server rack customer and end users raised concerns about the product’s compatibility with existing architectures, requiring unexpected modifications. Despite these issues, Semtech continued to project strong sales growth.
On February 7, 2025, after the market closed, Semtech announced that CopperEdge sales would not ramp up as expected due to required rack architecture changes. The company admitted that sales would fall below the previously disclosed floor estimate of $50 million.
Following this announcement, $SMTC dropped 31%.
Based on these events, $SMTC investors filed a lawsuit against Semtech Corporation, claiming the company:
- It misled investors about CopperEdge’s demand and its expected sales growth.
- It failed to disclose customer concerns and technical challenges that impacted adoption.
Investors believe Semtech misrepresented CopperEdge’s revenue potential while downplaying adoption risks.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/07/2025
Filing date
02/20/2025
Lead Plaintiff Deadline
04/21/2025