ASML. Class Action Lawsuit Looms As Share Price Declines 37% From Peak

the case is being championed by the Hollywood Firefighters pension fund

On November 15 last, the Rosen law firm, apparently acting on the instructions of the Hollywood Firefighters Pension Fund, filed a complaint against ASML for violations of the federal securities laws, details here. Then, On December 1, the same law firm, along with a host of others, invited all ASML investors who purchased their shares between January 24, 2024 and October 15, 2024, to join in a class action lawsuit:

As you might already have guessed, the end date for eligibility is the date of ASML’s most recent earnings call, which we discussed in some considerable detail here:

At issue is the claim that ASML executives misled investors on topics ranging from the sustainability of their business in China to the speed of recovery in the broader semiconductor market. Investors who bought ASML shares back in January 2024 are now looking at losses in the order of 34%. Furthermore, ASML’s current share price has now retreated to where it was back in mid 2021.

Do the claims against ASML’s executive leadership have some merit? We think not. Here’s why…