NEW YORK, April 03, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Lantronix (NASDAQ:LTRX), Inc. (Lantronix or the Company) (NASDAQ: LTRX) and reminds investors of the April 23, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Lantronix To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $50,000 investing in Lantronix stock or options between May 11, 2023 and February 8, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/LTRX.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Lantronix overstated demand and/or its visibility into demand for its IoT products; (2) Lantronix's customers were reducing elevated levels of inventory of IoT products, thereby causing a general slowdown in the Company's business; (3) certain of Lantronix's embedded IOT revenues expected from a customer design win were delayed to the next fiscal year; (4) as a result of all the foregoing, Lantronix anticipated lower sales for its embedded IOT solutions for fiscal year 2024; (5) accordingly, Lantronix was unlikely to meet its own previously issued guidance for fiscal year 2024; and (6) as a result, the Company's public statements were materially false and/or misleading at all relevant times.
On February 8, 2024, Lantronix reported its financial results for its second quarter of fiscal 2024 and revised its full-year guidance, stating that "[t]he change in our annual guidance is primarily due to lower expected sales for our embedded IOT solutions as a result of two factors: a general slowdown in our broad-based channel business as customers work through their inventories, and an embedded compute design win in video applications that was slated for revenue in the second half of fiscal 2024 that pushed into fiscal 2025."
On this news, Lantronix's stock price fell $1.89 per share, or 32.53%, to close at $3.92 per share on February 9, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Lantronix's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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