On March 25, 2024, Aehr announced its preliminary financial results for the third quarter of fiscal 2024, revealing an expected revenue of approximately $7.6 million, well below the consensus estimate of $14.3 million. The Company attributed the shortfall to delays in wafer-level burn-in system orders for semiconductor devices used in electric vehicles, which created a temporary gap in both revenue and profitability. Additionally, Aehr revised its 2024 revenue forecast downward by approximately $15 million.

As a result of this news, Aehr’s stock price dropped by $3.29, or 22.4%, closing at $11.37 per share on March 25, 2024, causing significant losses for investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose critical negative information about the Company’s business, operations, and prospects. Specifically, the Complaint asserts that Defendants failed to disclose that: (1) contrary to prior assurances, Aehr continued to experience substantial delays in customer orders; (2) these delays were likely to significantly negatively affect the Company’s revenue growth; (3) as a result, the Company’s business and financial outlook were overstated; and (4) consequently, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and lacked a reasonable basis.