Aehr Test Systems, Inc.

On March 25, 2024, Aehr released its preliminary third quarter fiscal 2024 financial results, revealing that the Company expected revenue to be approximately $7.6 million, significantly missing consensus estimates of $14.3 million, citing delays in wafer level burn-in system orders for semiconductor devices used in electric vehicles that created a short-term gap in revenue and profitability. Further, the Company lowered its 2024 revenue forecast by approximately $15 million.

On this news, Aehr’s stock price fell $3.29, or 22.4%, to close at $11.37 per share on March 25, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) contrary to prior representations to investors, Aehr was continuing to experience substantial delays in customer orders; (2) the foregoing issue was likely to have a material negative impact on the Company’s revenue growth; (3) accordingly, the Company’s business and/or financial prospects were overstated; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.