According to the Complaint, Wolfspeed, Inc. is a global semiconductor company focused on silicon carbide materials and the fabrication of devices for power applications. Wolfspeed largely targets its products toward the electric vehicle and industrial and energy sectors through its fabrication facilities in Mohawk Valley, New York and Durham, North Carolina. This lawsuit was filed against Wolfspeed and two of its Officers.

The Complaint alleges that Defendants provided the public with revenue projections that depended on Wolfspeed’s Mohawk Valley fabrication facility ramping its production to meet and/or exceed demand for its 200mm wafer product. The Complaint further alleges that Defendants provided these overwhelmingly positive statements to investors while, at the same time, misrepresenting and/or concealing material adverse facts concerning the true state of Wolfspeed’s growth potential and, in particular, the operational status and profitability of the Mohawk Valley fabrication facility.

On November 6, 2024, Wolfspeed announced its financial results for the first quarter of fiscal year 2025 and unveiled guidance for the second quarter well below expectations. The Company attributed its results and lowered guidance to “demand … ramp[ing] more slowly than we originally anticipated” as “EV customers revise their launch time lines as the market works though this transition period.”