The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired Photronics, Inc. (“Photronics” or the “Company”) (NASDAQ: PLAB) securities between December 10, 2025 and May 27, 2026, inclusive (the “Class Period”). Photronics investors have until September 4, 2026 to file a lead plaintiff motion.

What Happened?

On May 28, 2026, Photronics released its second quarter 2026 financial results, missing estimates, including revenue of $209 million, a year over year decline, and operating margins of 20.1%, down from 26.4% in the prior year. Further, the Company provided third-quarter guidance below expectations and revealed that the projected seasonal recovery following the Chinese New Year holiday had failed to materialize due to extensive new product launch delays, elevated fab utilization rates, and geopolitical uncertainty.

On this news, Photronics’ stock price fell $19.49, or 36.4%, to close at $34.02 per share on May 28, 2026, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, 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, Defendants failed to disclose to investors that: (1) the Company’s high-end chip design release pipeline was experiencing severe, ongoing bottlenecks due to elevated foundry utilization rates and equipment cost pressures; and (2) 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.