Wolfspeed, Inc. and certain executives have been sued for securities fraud, alleging that the Defendants materially misled investors concerning Wolfspeed’s revenue outlook for the Mohawk Valley Facility. On November 6, 2024, Wolfspeed announced its financial results for the first quarter of fiscal year 2025 and unveiled guidance for the second quarter well below expectations. While Defendants had repeatedly claimed that 20% utilization of the Mohawk Valley fabrication facility would result in $100 million revenue out of the facility, Defendants now guided to a range 30% to 50% below that mark. Investors and analysts reacted immediately to Wolfspeed’s revelation, resulting in a stock price decline of about 39.24% in the span of a single day.
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