THE LAWSUIT: A class action securities lawsuit was filed against Ultra Clean Holdings, Inc. (UCTT) that seeks to recover losses of Ultra Clean shareholders who were adversely affected by alleged securities fraud between May 6, 2024 and February 24, 2025
CASE DETAILS: According to the complaint, defendants provided investors with material information concerning the elevated demand from Chinese original equipment manufacturers (OEMs) and in the general Chinese domestic market for Ultra Clean’s products throughout the fiscal year 2024. Defendants’ statements included, among other things, reports of increased demand for the Company’s products and services in the domestic Chinese market and reports of increased revenue, including revenue doubling with no signs of slowing down, due to the elevated demand in China for Ultra Clean’s products and services.
Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of the demand for Ultra Clean’s products and services in the domestic Chinese market; notably, that the Company was facing a customer ramp issue with one of its critical customers, as well as a combination of inventory and demand corrections, which, ultimately, caused weakness for Ultra Clean in China.
On February 24, 2025, Ultra Clean published fourth quarter and full year 2024 fiscal results and hosted an associated earnings call, where the Company’s executives revealed that Ultra Clean was facing “demand softness” in China. In particular, Ultra Clean was facing decreased demand in China due to extended qualification timelines and inventory absorption.
Investors and analysts reacted immediately to these revelations. The price of Ultra Clean’s common stock declined dramatically. From a closing market price of $36.06 per share on February 24, 2025, Ultra Clean’s stock price fell to $25.90 per share on February 25, 2025, a decline of over 28% in the span a single day.
WHAT’S NEXT? If you suffered a loss in Ultra Clean stock during the relevant time frame – even if you still hold your shares – go to https://zlk.com/pslra-1/ultra-clean-holdings-inc-lawsuit-submission-form?wire=18 to learn about your rights to seek a recovery. There is no cost or obligation to participate.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
https://zlk.com/