A class action lawsuit was filed against Lantronix (NASDAQ:LTRX) on February 23, 2024. The plaintiffs (shareholders) alleged that they bought Lantronix’ stock at artificially inflated prices between May 11, 2023, and February 8, 2024 (Class Period) and are now seeking compensation for their financial losses. Investors who bought LTRX stock during that period can learn about joining the lawsuit here: https://zlk.com/pslra-1/lantronix-inc-lawsuit-submission-form?wire=16
Lantronix is a Software-as-a-Service (SaaS) provider in the Internet of Things (IoT) and Remote Environment Management (REM) space. Its solutions are applied in the healthcare, industrial, data security, energy, data center, transportation, government, and financial sectors in the U.S. and internationally.
The plaintiffs maintain that the company and two of its current or former senior officers deceived investors by repeatedly lying and withholding vital information about Lantronix’ business practices and prospects during the Class Period. Importantly, the shareholders allege that the defendants failed to disclose truthful information about demand for certain products, inventory, and ancillary matters.
The information became clear on February 8, 2024, when Lantronix significantly slashed the revenue and adjusted earnings guidance for its Fiscal year 2024. The company cited lower expected demand for its IoT solutions owing to excess inventories at customers as well as “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.”
Meanwhile, during the Class Period, Lantronix had stated a number of times that the demand for its products was growing and enabling the company to meet its growth targets despite the tough macro environment. Moreover, the company reiterated that it was confident in meeting its FY24 guidance thanks to continuous innovation and the implementation of a growth strategy. These had helped Lantronix to strengthen its market position and attract more customers for more solutions and services, Lantronix added.
As per the class action lawsuit, Lantronix’ caused the LTRX stock to trade at artificially inflated prices by knowingly and recklessly misleading investors about its business performance and financials.
Notably, LTRX stock has lost 17.2% in the past year and over 39% so far in 2024.
