STM Prepares to Face Class Action in US

STM Prepares to Face Class Action in US

(Finance) – After the slip at the beginning of August, concerns about STMicroelectronicswhich is preparing to face a class action in USAlinked precisely to the collapse recorded by the stock on the occasion of the announcement of the cut in turnover forecasts at the end of July.

As many as two law firms in the USA, after the incident, they had filed suit to the Italian-French chip giant and its management – to CEO Jean-Marc Chery and CFO Lorenzo Grandi – for having provided misleading forecasts and thus caused the collapse of the stock market share, but in the end it Levi & Korsinsky Law Firm in New York it was decided to start a real one class actionwhich could cost the company dearly.

The first collapse was recorded on July 25thwhen STM launched a Revenue warningcutting the estimate again from 14-15 billion dollars to 13.2-13.7 billion (at the beginning of the year the view indicated as much as 17 billion). A forecast capable of negatively reflecting also on the operating profit, which would be lower by 1 billion.

On these indications the STM stock dropped by around 14%, going from around 37 euros to 26.6 euros, to then slightly recover ground around the current 27.91 euros. To date, STM shares show a monthly performance of -9%.

(Photo: Adi Goldstein on Unsplash)

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