ASML Faces Class Action Lawsuit Amid Investor Losses

ASML Faces Class Action Lawsuit Amid Investor Losses

2024-12-09 companies

Veldhoven, Monday, 9 December 2024.
ASML Holding N.V. is facing a securities class action lawsuit due to alleged misleading statements about semiconductor industry challenges, impacting investor confidence and resulting in significant stock price drops.

Multiple law firms have filed a class action lawsuit against ASML Holding N.V. (NASDAQ: ASML) [1][2][3]. The lawsuit covers investors who purchased ASML shares between January 24, 2024, and October 15, 2024, with a lead plaintiff deadline set for January 13, 2025 [1][2]. The case, titled City of Hollywood Firefighters’ Pension Fund v. ASML Holding N.V., No. 24-cv-08664, is being heard in the Southern District of New York [1].

Financial Impact and Market Response

The company’s financial performance significantly deviated from projections, with quarterly bookings dropping to €2.63 billion, marking a 53% decline from €5.6 billion in Q2 2024 [1][2]. ASML also reduced its 2025 net sales guidance to €30-35 billion from the initial €30-40 billion range, while lowering its gross margin target to 51-53% from 54-56% [1]. The market reacted severely to these announcements, with ASML’s stock price falling over 16% from $872.27 to $730.43 on October 15, 2024, followed by an additional 6.4% drop to $683.52 on October 16, 2024 [3][4].

Core Allegations

The lawsuit alleges that ASML misled investors about several crucial aspects of its business. Key claims include downplaying the severity of supplier issues in the semiconductor industry, misrepresenting the pace of sales recovery, and creating false impressions about customer demand reliability [1][6]. Additionally, the company is accused of inadequately disclosing the impact of Dutch export controls on its financial outlook [3].

Management Response and Industry Context

On October 16, 2024, ASML’s CFO Roger Dassen attributed the poor performance to ‘the slow recovery in the traditional semiconductor end markets as customers remain cautious in the current environment’ [1][2]. CEO Christophe Fouquet further acknowledged that the recovery would ‘extend well into 2025,’ leading to reduced lithography demand [2]. These statements represent a significant shift from earlier, more optimistic projections about the company’s market position and recovery trajectory [3].

Sources


ASML Securities Class Action