Pomerantz LLP has announced the filing of a class action lawsuit against Lantronix, Inc. and certain officers. The lawsuit, filed in the United States District Court for the Central District of California, seeks to recover damages for violations of federal securities laws.
The class action lawsuit is on behalf of all persons and entities, excluding the defendants, who purchased or acquired Lantronix securities between May 11, 2023, and February 8, 2024. The lawsuit alleges that Lantronix made false and misleading statements about its business, operations, and prospects during this period. Specifically, the company overstated demand for its Internet of Things (IoT) products and failed to disclose that customers were reducing their levels of inventory, causing a slowdown in Lantronix’s business. Additionally, certain revenues expected from a customer design win were delayed to the next fiscal year, resulting in lower sales projections for fiscal year 2024.
On February 8, 2024, Lantronix issued a press release revising its fiscal year 2024 guidance, indicating lower revenue and earnings per share than previously stated. The stock price fell significantly following this announcement.
Investors who purchased or acquired Lantronix securities during the Class Period have until April 23, 2024, to request to be appointed as Lead Plaintiff for the class. Further information about joining the class action can be obtained at www.pomerantzlaw.com.
Pomerantz LLP is a renowned firm specializing in corporate, securities, and antitrust class litigation, with offices across the globe. The firm has a history of successfully recovering damages for victims of securities fraud and corporate misconduct.
Lantronix, Inc. operates in the technology industry, specifically focusing on Internet of Things (IoT) products. The IoT industry is experiencing rapid growth as more devices and objects become connected to the internet, allowing for increased automation and data exchange. According to market forecasts, the global IoT market is expected to reach $1.1 trillion by 2026, with significant growth in sectors such as healthcare, manufacturing, and transportation. Source
However, the industry also faces several challenges. One issue is the increased risk of cyberattacks as more devices are connected to the internet. Companies in the IoT industry must prioritize security measures to safeguard sensitive data and protect against potential breaches.
Another challenge is the complexity of integrating various devices and technologies. As the IoT ecosystem expands, ensuring compatibility and seamless communication between different components becomes crucial. Companies like Lantronix aim to provide solutions that simplify IoT deployments and enable smooth connectivity across devices.
In the case of Lantronix, the class action lawsuit alleges that the company misrepresented its business and prospects, particularly regarding demand for its IoT products. The lawsuit claims that Lantronix overstated demand while failing to disclose that customers were reducing their levels of inventory, leading to a slowdown in the company’s business. Additionally, the delayed expected revenues from a customer design win resulted in lower sales projections.
Investors who purchased or acquired Lantronix securities during the specified period may be eligible to participate in the class action lawsuit. Pomerantz LLP, a renowned firm specializing in corporate, securities, and antitrust class litigation, is representing the investors in their pursuit of recovering damages for securities fraud and corporate misconduct.
For more information about the class action lawsuit against Lantronix and the process of joining as a lead plaintiff, interested parties may visit the Pomerantz LLP website at www.pomerantzlaw.com.