Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Ultra Clean Holdings, Inc. (UCTT)

/EIN News/ -- NEW YORK, March 25, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired Ultra Clean Holdings, Inc. (“UCTT” or the “Company”) (NASDAQ: UCTT) securities between May 6, 2024 and February 24, 2025, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.

The Complaint alleges that Defendants provided investors with material information concerning the elevated demand from Chinese original equipment manufacturers (OEMs) and in the general Chinese domestic market for Ultra Clean's products throughout the fiscal year 2024. The Complaint further alleges that Defendants' statements included, among other things, reports of increased demand for the Company's products and services in the domestic Chinese market and reports of increased revenue, including revenue doubling with no signs of slowing down, due to the elevated demand in China for Ultra Clean's products and services.

In addition, the Complaint alleges that Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of the demand for Ultra Clean's products and services in the domestic Chinese market; notably, that the Company was facing a customer ramp issue with one of its critical customers, as well as a combination of inventory and demand corrections, which, ultimately, caused weakness for Ultra Clean in China.

The Complaint further alleges that on February 24, 2025, Ultra Clean published fourth quarter and full year 2024 fiscal results and hosted an associated earnings call, where the Company's executives revealed that Ultra Clean was facing "demand softness" in China. The Complaint also alleges that in particular, Ultra Clean was facing decreased demand in China due to extended qualification timelines and inventory absorption.

The Complaint alleges that investors and analysts reacted immediately to these revelations. The Complaint additionally alleges that the price of Ultra Clean's common stock declined dramatically from a closing market price of $36.06 per share on February 24, 2025, to $25.90 per share on February 25, 2025, a decline of over 28% in the span a single day.

Investors who purchased or otherwise acquired shares of Ultra Clean should contact the Firm prior to the May 23, 2025 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.