ST(US:STM) GlobeNewswire News Roomยท2024-09-17 00:29Core Viewpoint - A class action has been filed against STMicroelectronics N.V. for allegedly misleading investors about its business prospects during the first half of 2024 [1][2]. Group 1: Allegations and Financial Performance - The complaint alleges that STMicroelectronics did not disclose a decline in demand in its automotive and industrial sectors, contrary to previous statements [2]. - As a result of the declining demand, the company's revenues and gross margins also continued to decline during this period [2]. - On July 25, 2024, STMicroelectronics announced Q2 2024 results, revising its FY 2024 revenue projections down to a range of $13.2 billion to $13.7 billion, a reduction from the previously revised forecast of $14 billion to $15 billion [3]. - The gross margin was also revised down to "about 40%," from the previously revised forecast of "in the low 40's" [3]. - Q2 revenue experienced a 25.3% decline year-over-year, amounting to $3.23 billion, with net sales to OEMs and through distribution channels decreasing by 14.9% and 43.7% year-over-year, respectively [3]. Group 2: Market Reaction - Following the announcement of the negative financial results, STMicroelectronics' share price fell by $6.07 per share, or 15.35%, closing at $33.47 per share on July 25, 2024 [3]. Group 3: Class Action Participation - Shareholders interested in participating in the class action must submit their application to the court by October 22, 2024 [4]. - A lead plaintiff will represent other class members in directing the litigation, but participation is not required to be eligible for recovery [4]. Group 4: Legal Representation - Robbins LLP, a recognized leader in shareholder rights litigation, is handling the case and operates on a contingency fee basis, meaning shareholders pay no fees or expenses [5]. - The firm has a history of recovering over $1 billion for shareholders since its inception [5].