Photronics Investors Face September Deadline in Securities Lawsuit

The litigation targets Photronics and three senior executives—CEO George C. Macricostas, CFO Eric Rivera, and PDMC President KangJyh Lee—accusing them of issuing misleading statements between December 10, 2025, and May 27, 2026. Plaintiffs allege that while management publicly touted robust demand and positive growth forecasts, the company faced significant internal bottlenecks. These issues included elevated fab utilization rates, memory supply constraints, and geopolitical uncertainty that rendered earlier projections unachievable.

The complaint centers on Section 20(a) liability, contending that the individual defendants had the authority to control SEC filings and were aware of undisclosed adverse facts. Under the Sarbanes-Oxley Act, Macricostas and Rivera were required to personally certify the accuracy of the company’s periodic reports. The lawsuit asserts that these certifications were false, as the executives allegedly downplayed seasonal risks and operational constraints to maintain market confidence. Following the disclosure of an 11% sequential collapse in IC revenue and weaker-than-expected Q3 outlooks, Photronics shares fell by $19.49, resulting in substantial losses for shareholders who purchased stock during the designated class period.