Zinger Key Points
- ASML faces a securities fraud lawsuit after stock plunged 27% over six months, raising investor concerns.
- Investors allege ASML misled about financial health; join the class action before the January 13 deadline.
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Editor’s note: This story has been updated with edits for balance and to remove unnecessary details.
Semiconductor supplier ASML Holding N.V. ASML is embroiled in a high-stakes securities fraud lawsuit that has investors buzzing.
What Happened: After its stock took a staggering 15% nosedive in October and continued to slide, shareholders are gearing up for a courtroom showdown with the company and its senior executives.
The Dutch lithography giant, renowned for powering global chipmakers, downplayed the impact of new export controls and promised a rosy recovery in sales.
Reality hit hard when ASML's October earnings report revealed a sluggish market recovery and a sharp decline in sales to China, slashing gross margins. Investors, blindsided by the reversal, saw the stock tumble from $872 to $683 within days.
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Why It Matters: A class-action lawsuit, spearheaded by the City of Hollywood Firefighters' Pension Fund, alleges ASML misled shareholders about its financial health.
What’s Next: While the stock has rebounded 11.72% in the past month, it remains down 27.44% over six months, underscoring investor unease.
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