Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of Skyworks Solutions, Inc. breached their fiduciary duties to shareholders.
According to a federal securities lawsuit, insiders at Skyworks caused the company to misrepresent or fail to disclose material adverse facts concerning the true state of Skyworks’ client base; notably, that its long-standing relationship with Apple, its largest customer, did not guarantee that Apple would maintain its business relationship with Skyworks for its anticipated iPhone launch.
Additionally, insiders oversold Skyworks’ position and ability to capitalize on AI in the smartphone upgrade cycle, according to the lawyers at Kuehn Law.
In March the law offices of Howard G. Smith announced that a class action lawsuit had been filed on behalf of investors who purchased Skyworks Solutions, Inc. securities between July 30, 2024 to February 5, 2025.
What does this have to do with Apple? Let me explain.
On February 5, 2025, Skyworks released its first quarter 2025 financial results, reporting a greater than anticipated decline in quarterly revenue and providing lower guidance for the second quarter than expected. The company attributed the results to a “competitive landscape” that had “intensified” in recent years.
On this news, Skyworks’ stock price fell $21.48, or 24.7%, to close at $65.60 per share on February 6, 2025, thereby injuring investors.
The complaint filed in the class action alleges that throughout the class period (July 30, 2024 to February 5, 2025) the defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the defendants failed to disclose to investors that: (1) its long-standing relationship with Apple, its largest customer, did not guarantee that Apple would maintain its business relationship with Skyworks for its anticipated iPhone launch; (2) Defendants oversold Skyworks’ position and ability to capitalize on AI in the smartphone upgrade cycle; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Skyworks Solutions, Inc. is an American semiconductor company headquartered in Irvine, California. The company’s products, such as low-noise and power amplifiers, connectivity switches or radio co-processors, can be used in the automotive, streaming or broadcast industry. Other products include DRM platforms for cars, RF switches as well as power management chips. A GSM power amplifier and a RF switch from Skyworks were used in the iPhone 15.
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