Important Information Regarding Section 20(a) Individual Liability Claims: Photronics CEO and CFO Allegedly Certified Misleading Statements While Design Release Pipeline Bottlenecks Rendered Growth Forecasts Unachievable
NEW YORK, July 29, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP alerts investors in Photronics, Inc. (NASDAQ: PLAB) of a pending securities class action naming three senior executives as individual defendants. Class Period: December 10, 2025 through May 27, 2026. Find out if you qualify to recover losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.
Photronics shares fell $19.49 per share on May 28, 2026, a single-day decline of 36.42%, after the Company revealed that IC revenue collapsed 11% sequentially and issued Q3 guidance well below market consensus. The Court has set September 4, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
The securities action, filed in the United States District Court for the District of Connecticut, names the following individuals alongside the Company:
- George C. Macricostas -- Chief Executive Officer and Executive Chairman at all relevant times. The complaint charges that Macricostas made statements during the December 10, 2025 and February 27, 2026 earnings calls touting "positive forecasts" from high-end customers and "robust" order demand.
- Eric Rivera -- Chief Financial Officer, Vice President, and Corporate Controller at all relevant times; appointed President effective January 12, 2026. The action contends Rivera issued quarterly revenue guidance and echoed optimistic characterizations of product mix and demand strength.
- KangJyh Lee -- President of PDMC and Director of Photronics at all relevant times. The pleading asserts Lee reinforced high-end growth narratives during earnings call Q&A sessions, including statements about capacity expansion plans and competitive positioning.
Section 20(a) Control Person Framework
The complaint alleges each individual defendant possessed the power and authority to control the contents of Photronics' SEC filings, press releases, and presentations to analysts and institutional investors. Each was allegedly provided with copies of the Company's public reports prior to or shortly after issuance and had the ability to prevent their release or cause corrections. The action asserts these officers knew that adverse facts had not been disclosed to the investing public and that positive representations being made were materially false or misleading.
Sarbanes-Oxley Certification Obligations
As CEO and CFO respectively, Macricostas and Rivera were required under Sections 302 and 906 of the Sarbanes-Oxley Act to personally certify the accuracy of Photronics' periodic SEC filings. These certifications carry personal liability and attest that:
- The filing does not contain untrue statements of material fact or omit material facts necessary to make the statements not misleading
- The financial statements fairly present in all material respects the Company's financial condition and results of operations
- The signing officers are responsible for establishing and maintaining internal controls
- The signing officers have disclosed any significant deficiencies in internal controls to the audit committee
Scienter Allegations Against Individual Officers
The complaint alleges the individual defendants possessed actual knowledge of, or were deliberately reckless in disregarding, the bottleneck in Photronics' design release pipeline caused by elevated fab utilization rates, memory supply constraints, and geopolitical uncertainty. The action contends these conditions existed during the Class Period while defendants publicly projected continued high-end IC growth and minimized seasonal risk.
"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When executives certify SEC filings under Sarbanes-Oxley, they assume personal responsibility for the disclosures those filings contain." -- Joseph E. Levi, Esq.
Speak with an attorney about recovering damages or call (212) 363-7500.
Levi & Korsinsky, LLP | Top 50 Securities Firm | (212) 363-7500 | www.zlk.com | Attorney Advertising. Prior results do not guarantee similar outcomes.
Frequently Asked Questions About the PLAB Lawsuit
Q: Who are the defendants named in the PLAB lawsuit? A: The complaint names Photronics, Inc. and individual defendants including CEO George C. Macricostas, CFO/President Eric Rivera, and PDMC President/Director KangJyh Lee, all of whom signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley during the Class Period.
Q: What is the PLAB class action lawsuit about? A: A securities class action has been filed against Photronics, Inc. (NASDAQ: PLAB) alleging materially false and misleading statements between December 10, 2025 and May 27, 2026. Shares fell approximately 36.42% after the truth was revealed, causing significant losses for shareholders.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: How do I know if I lost enough money to be the lead plaintiff? A: There is no minimum loss threshold. Courts appoint the investor with the largest provable loss who is willing and able to represent the class adequately. Contact Levi & Korsinsky before September 4, 2026 to evaluate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What if I already sold my PLAB shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Can I join a different law firm's lawsuit instead? A: Multiple firms often file competing complaints. The court consolidates and appoints a single lead counsel. Contacting Levi & Korsinsky before September 4, 2026 ensures your losses are considered.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
Tel: (212) 363-7500\
Fax: (212) 363-7171
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