Case Summary

Lantronix

NASDAQ: LTRX

Case Details

  • Neilsen v. Lantronix, Inc. et al.
  • Class Period:May 11, 2023 - February 08, 2024
  • Date Filed:February 23, 2024
  • Jurisdiction:U.S. District Court, Cental District of California
  • Docket Number: 8:24-cv-00385
  • Lead Plaintiff Deadline: April 23, 2024
Days Left to
Seek Plaintiff
0

Overview

A class action lawsuit has been filed against Lantronix, Inc. (“Lantronix” or the “Company”) (NASDAQ: LTRX) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Lantronix lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Lantronix securities between May 11, 2023 and February 8, 2024, both dates inclusive (the “Class Period”), and investors have until April 23, 2024 to seek appointment as lead plaintiff of the Lantronix class action lawsuit.

Lantronix is a global industrial and enterprise internet of things (“IoT”) provider of solutions that purportedly targets high growth applications in specific verticals such as smart grids, intelligent transportation, smart cities, and artificial intelligence data centers.  The Company organizes its products and solutions into three product lines: (1) Embedded IoT Solutions, (2) IoT System Solutions, and (3) Software & Services.  The Company’s sales channels are comprised of distributors, resellers, and direct sales to larger original equipment manufacturers and end users, as well as through its ecommerce site.

In May 2023, Lantronix forecasted that it would achieve revenue in a range of $175 million to $185 million, as well as non-GAAP earnings-per-share (“EPS”) in a range of $0.50 to $0.60 per share, for its fiscal year 2024 results.  Defendants repeatedly assured investors and analysts throughout the Class Period that this guidance for fiscal year 2024 remained unchanged, despite knowing that Lantronix’s customers were experiencing elevated levels of inventory for IoT products, and that embedded IoT revenues expected from a customer design win were pushed out to the next fiscal year.

The lawsuit alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed 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 of 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 issued a press release announcing its financial results for the second quarter of its fiscal year 2024.  Therein, the Company negatively revised its fiscal year 2024 guidance, advising that “for fiscal year 2024, the company now expects revenue in a range of $155 million to $165 million” – versus the previously provided range of $175 million to $185 million –  “and non-GAAP EPS in a range of $0.35 to $0.45 per share” – versus the previously provided range of $0.50 to $0.60 per share.  On a call with investors and analysts to discuss these results, the Company management team revealed that “the change in our annual guidance is primarily due to lower expected sales for our embedded IoT solutions as a result of two factors,” namely, “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.”  Following these disclosures, Lantronix’s stock price fell $1.89 per share, or 32.53%, to close at $3.92 per share on February 9, 2024.

*          *          *

If you purchased or otherwise acquired Lantronix (NASDAQ: LTRX) securities between May 11, 2023 and February 8, 2024, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Lantronix lawsuit is April 23, 2024.

Join This Action

Name(Required)
Address(Required)
Are you a current or former employee at the company?(Required)

Purchases

Purchases Buy Date Quantity Purchase Price per share or security Actions
       

Sales

Sale Type Sale Date Quantity Sale Price per share or security Actions
       

Upload Documents

Drop files here or
Accepted file types: xls, xlsx, doc, pdf, jpg, jpeg, Max. file size: 50 MB, Max. files: 5.