Class Action Lawsuit Filed Against Micron Technology, Inc. (MU)

On January 10, 2025, Gainey McKenna & Egleston announced that a securities class action lawsuit has been initiated in the United States District Court for the Southern District of Florida. The lawsuit is brought on behalf of all individuals or organizations that purchased or acquired Micron Technology, Inc. ("Micron Technology" or the "Company") securities during the period from September 28, 2023, to December 18, 2024, inclusively referred to as the "Class Period."

The complaint states that the defendants made false and/or misleading statements and failed to disclose critical information about the Company’s operations. Specifically, it accuses them of not acknowledging that: (i) the demand for the Company's products in consumer markets, particularly its NAND products, had significantly declined; (ii) consequently, the defendants exaggerated the recovery of demand for the Company's products in these markets and overstated the sustainability of that demand, along with the normalization of inventory levels; and (iii) as a result, the public statements made by the Company were materially incorrect and misleading during the entire period concerned.

On December 18, 2024, Micron Technology released its financial results for the first quarter of fiscal year 2025. The report highlighted a revenue decline that exceeded expectations for NAND flash memory in that quarter. Additionally, the Company provided bleak guidance for the second quarter of fiscal year 2025, predicting adjusted earnings between $1.33 and $1.53 per share, which was significantly lower than the $1.92 per share forecast. The sales expectations were also disappointing, ranging from $7.7 billion to $8.1 billion, with the midpoint falling well below the predicted $8.99 billion. Furthermore, adjusted gross margins were anticipated to be between 37.5% and 39.5%, notably below the 41.3% estimate, due to weaknesses observed in its consumer-oriented markets.

As a result of these revelations, numerous analysts revised their price targets for Micron Technology stock downward, pointing to the disappointing guidance for the second fiscal quarter and highlighting significant demand weakness in its consumer markets, particularly for NAND products. Following this downturn, Micron Technology’s stock price decreased by $16.81 per share, or 16.18%, closing at $87.09 per share on December 19, 2024.

Investors who purchased or acquired shares in Micron Technology are encouraged to reach out to the Firm before the deadline for the lead plaintiff motion on March 10, 2025. The lead plaintiff serves as a representative for other class members in guiding the litigation process. Anyone wishing to discuss their rights or interests concerning this class action can contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. at Gainey McKenna & Egleston by calling (212) 983-1300, or emailing [email protected] or [email protected].

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