Groowe Groowe BETA / Newsroom
⏱ News is delayed by 15 minutes. Sign in for real-time access. Sign in

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Photronics, Inc. (PLAB)

globenewswire.com
PLAB A class action lawsuit has been filed against Photronics alleging failure to disclose that product demand had stalled, a critical bottleneck in its design release pipeline, and that forward growth expectations were unachievable. The company also reported Q2 2026 revenue and earnings below projections, with a significant IC revenue collapse and weak Q3 guidance.

NEW YORK, July 10, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Connecticut on behalf of all persons or entities who purchased or otherwise acquired Photronics, Inc. (“Photronics” or the “Company”) (NASDAQ: PLAB) securities between December 10, 2025 to May 27, 2026, inclusive (the “Class Period”).

The Complaint alleges that Defendants failed to disclose to investors that Photronics’ high-end product pipeline, customer schedules, and the stability of the alleged demand for its products; notably, that the seasonal recovery and design release momentum following the Chinese New Year holiday the Company was claiming would develop had stalled. The Complaint further alleges that Photronics was experiencing a critical bottleneck in its design release pipeline that rendered its forward growth expectations unachievable. The Complaint alleges that such statements absent these material facts caused Plaintiff and other shareholders to purchase Photronics’ securities at artificially inflated prices.

The Complaint also alleges that on May 28, 2026, Photronics announced its financial results for the second quarter of fiscal 2026, revealing revenue and earnings well-below internal projections and highlighting a critical collapse of IC revenue by 11% sequentially. The Complaint continues to allege that management further provided third-quarter guidance below market consensus as the slowdown was expected to continue and margins were expected to continue their trend of compression. The Complaint further alleges that management claimed that the projected seasonal recovery following the Chinese New Year holiday had failed to materialize due to extensive new product launch delays, elevated fab utilization rates, and geopolitical uncertainty.

The Complaint states that investors and analysts reacted immediately to Photronics’ revelation. The Complaint further alleges that the price of Photronics’ common stock declined dramatically, from a closing market price of $53.51 per share on May 27, 2026, Photronics’ stock price fell to $34.02 per share on May 28, 2026, a decline of about 36.42% in the span of just a single day.

Investors who purchased or otherwise acquired shares of Photronics should contact the Firm prior to the September 4, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.