Wolfspeed Faces Securities Class Action Over Alleged Misrepresentations of Growth and Demand

A securities class action lawsuit against Wolfspeed Inc. alleges the semiconductor company made false and misleading statements about its growth potential and product demand between August 16, 2023, and November 6, 2024. The lawsuit, filed by Kessler Topaz Meltzer & Check, LLP, claims Wolfspeed overstated the prospects of its Mohawk Valley fabrication facility and the demand for its 200mm wafers in the electric vehicle market. According to the complaint, the company's optimistic projections did not align with reality, and Wolfspeed allegedly misrepresented demand for key products while relying excessively on purported design wins.

Central to the allegations are claims that Wolfspeed exaggerated the potential of its Mohawk Valley facility, stating it could generate $100 million in revenue per quarter at only 20% utilization and eventually reach $2 billion in revenue. The lawsuit argues these projections were unrealistic and that the facility's growth had already begun to slow before achieving these milestones. This legal challenge emerges during a period of demand fluctuations and supply chain issues in the semiconductor industry, potentially influencing how companies communicate growth projections and market potential to investors.

Investors who purchased or acquired Wolfspeed securities during the class period may seek appointment as lead plaintiff by the January 17, 2025 deadline. The lead plaintiff represents all class members in directing the litigation. Kessler Topaz Meltzer & Check, LLP, known for prosecuting class actions in state and federal courts, emphasizes its role in protecting investors from corporate misconduct. The firm provides information about the case at https://www.ktmc.com/wolfspeed-class-action-lawsuit?utm_source=PR&utm_medium=referral&utm_campaign=wolfspeed.

This lawsuit underscores the importance of corporate transparency and the risks of overstating market potential or product demand. It also highlights securities class actions as a mechanism for investor protection and corporate accountability in U.S. financial markets. As the case advances, it will be monitored by investors, industry analysts, and other semiconductor companies, with potential implications for how growth projections and market demand are communicated across the sector. The resolution could affect investor confidence and corporate practices, particularly as semiconductors remain critical for technological advancement in areas like electric vehicles.