Investors in Photronics face deadline to join securities lawsuit

SAN FRANCISCO, Sept. 3, 2026, Investors who purchased shares of Photronics, Inc. (NASDAQ: PLAB) between December 10, 2025, and May 27, 2026, and suffered significant losses are urged to take action before the September 4, 2026, deadline to seek appointment as lead plaintiff in a pending securities class action lawsuit. Hagens Berman, a leading national shareholder rights law firm, is actively investigating the case and encouraging investors who experienced substantial financial harm to contact the firm.

On May 28, 2026, Photronics disclosed disappointing financial results for the second quarter of fiscal 2026, marking a steep decline in revenue and operating margins. The company reported a 11% drop in integrated circuit (IC) revenues and a reduction in total revenue. Photronics blamed the shortfall on a failed seasonal recovery following the Chinese New Year and unexpected operational bottlenecks. The market's response was swift and severe, with the company's stock price plummeting 36% in a single trading session, erasing over $1.1 billion in shareholder value.

The pending lawsuit alleges that Photronics and its management made materially false and misleading statements about the condition of its high-end IC photomask product pipeline and global order patterns. According to the complaint, the company repeatedly assured investors that global demand was robust and that healthy order patterns would offset post-holiday seasonality. The suit contends that these assurances were false because the company’s design release pipeline was suffering from severe and ongoing bottlenecks driven by elevated fab usage rates and equipment cost pressures, conditions that management allegedly knew about or recklessly disregarded while maintaining positive financial guidance.

Reed Kathrein, a partner at Hagens Berman leading the investigation, stated, "Our investigation is actively probing the full scope of these pending claims to determine exactly when management knew that demand for its IC products was deteriorating."