Dutch semiconductor leader ASML Holding N.V. is facing allegations in a Manhattan federal court of deceiving investors about the company's financial prospects amid declining global demand and tighter export controls on sensitive technologies to China.

Investor Anas Matar filed a securities fraud lawsuit against ASML, the world's sole producer of advanced photolithography machines crucial for semiconductor manufacturing, in the U.S. District Court for the Southern District of New York. Represented by attorneys from Bleichmar Fonti & Auld, Matar alleges that ASML's executives violated the Securities Exchange Act by misrepresenting the extent of industry challenges and exaggerating the pace of recovery.

The lawsuit claims ASML executives created a false impression of reliable insight into customer demand and growth forecasts while minimizing risks from macroeconomic factors, industry volatility, and stricter regulations. The named defendants include Chief Financial Officer Roger Dassen, current CEO Christophe Fouquet, and former CEO Peter Wennink.

Allegations Center on Optimistic 2022 Forecast

At the heart of the lawsuit is a November 2022 statement in which ASML projected sales between €30 billion and €40 billion by 2025. This forecast, Matar contends, failed to account for subsequent drops in global semiconductor sales and the Dutch government's restrictions on semiconductor technology exports to China, one of ASML's key markets.

Matar argues that ASML executives downplayed these developments in their January 2024 communications, following the release of the company's 2023 financial results. During an earnings call, Wennink suggested that the semiconductor sector was showing “first signs” of recovery and projected strong sales in China for 2024.

However, by the third quarter of 2024, ASML's bookings had fallen over 50% compared to the second quarter. After the release of these results, CEO Fouquet admitted the industry's recovery was slower than anticipated and disclosed declining sales in China.

Share Price Decline and Investor Impact

Following the third-quarter results, ASML's share price dropped 16.3%. The value fell an additional 6.4% after the earnings call where the disappointing recovery outlook was revealed.

This case parallels a similar lawsuit filed in November 2024 by Bernstein Litowitz Berger & Grossman on behalf of the City of Hollywood Firefighters' Pension Fund, which also accused ASML of misleading investors.

Both lawsuits underscore the scrutiny faced by ASML amid the semiconductor industry's turbulent recovery and the growing challenges posed by geopolitical and regulatory pressures.