The law firm says investors have until Sept. 4, 2026 to seek lead plaintiff status in a case tied to alleged misstatements about demand for high-end IC photomasks.
Hagens Berman said it is investigating Photronics, Inc. over alleged federal securities law violations after a class action lawsuit accused the company of misleading investors about demand and the outlook for its high-end integrated circuit photomask business. The proposed class period runs from Dec. 10, 2025 to May 27, 2026, and the lead plaintiff deadline is Sept. 4, 2026. The complaint alleges Photronics and its management made materially false and misleading statements about the state of the company’s high-end IC product pipeline and global order patterns, while assuring investors that demand and ordering trends would offset normal post-holiday seasonality. Plaintiffs contend the company’s design release pipeline was facing severe and ongoing bottlenecks tied to elevated fab usage rates and equipment cost pressures, even as management maintained positive financial guidance. Those allegations came into sharper focus on May 28, 2026, when Photronics reported second-quarter fiscal 2026 results showing sequential declines in total revenue, an 11% drop in IC revenues and compressed operating margins. The release said the company blamed the miss on a failed seasonal recovery after the Chinese New Year and unexpected operational bottlenecks. Shares fell 36% in a single trading session, erasing more than $1.1 billion in market capitalization. Reed Kathrein, the Hagens Berman partner leading the firm’s investigation, said the firm is examining when management knew that demand for Photronics’ IC products was deteriorating. The firm also said people with non-public information may consider the SEC Whistleblower program (U.S. securities tipster reward program), which can award up to 30% of a successful SEC recovery.