Semtech, CEO Must Battle Investor’s Copper Cable Sales Suit (1)

Semtech Corp. must defend against investor allegations it overhyped its active copper cable technology’s market opportunity after reports Nvidia Corp. wasn’t developing a certain rack-scale configuration for computing processes that might have utilized the semiconductor company’s product.

The company’s debt position after a prior acquisition coupled with a tight timeline of key events supported a sufficient inference of its top executive’s intent or recklessness to deceive investors, Judge Mark C. Scarsi said. That November 2024 through February 2025 timeline included earnings call statements touting its CopperEdge technology’s net sales expectations, the sudden resignation of a longtime board member, a ...