Ultra Clean (US:UCTT) GlobeNewswire News Room·2025-05-07 16:32Core Viewpoint - The article discusses a class action lawsuit against Ultra Clean Holdings, Inc. (NASDAQ: UCTT) due to allegations of misleading statements regarding demand for its products in the Chinese market, leading to significant stock price decline after the truth was revealed [1][3]. Group 1: Allegations and Demand Issues - The lawsuit alleges that Ultra Clean's executives provided investors with overly positive information about demand from Chinese OEMs and the domestic market throughout fiscal year 2024, including claims of revenue doubling without signs of slowing down [3]. - It is claimed that while making these positive statements, the company concealed material adverse facts, such as facing a customer ramp issue and inventory and demand corrections, which ultimately led to weakness in demand in China [3]. - On February 24, 2025, Ultra Clean reported "demand softness" in China during its earnings call, revealing decreased demand due to extended qualification timelines and inventory absorption [3]. Group 2: Stock Price Impact - Following the earnings call on February 24, 2025, Ultra Clean's stock price plummeted from $36.06 per share to $25.90 per share on February 25, 2025, marking a decline of over 28% in just one day [3]. Group 3: Class Action Participation - Shareholders who purchased UCTT shares during the class period from May 6, 2024, to February 24, 2025, are encouraged to register for the class action, with a deadline of May 23, 2025, to seek lead plaintiff status [4]. - Participants will be enrolled in a portfolio monitoring software to receive updates throughout the case lifecycle, with no cost or obligation to participate [4]. Group 4: Law Firm Background - The Gross Law Firm, which is handling the class action, is a nationally recognized firm dedicated to protecting investors' rights against deceit and fraud, aiming to ensure responsible business practices by companies [5].