Veeco Instruments Inc.
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Veeco Instruments, Inc. (VECO) Accused of Failing to Disclose Increasing Competition in China
According to the complaint, Veeco Instruments, Inc. (VECO) registration statement issued in connection with its merger to Ultratech, Veeco touted that it generates a significant portion of its revenue in China. However, increased Chinese competition, worsening financial metrics, escalating intellectual property disputes, and severe risk of retaliation in its critical Chinese markets were having a negative effect on Veeco’s prospects. The truth about Veeco’s financial condition came out in August 2017, when Veeco announced disappointing 2Q 2017 earnings and guidance. Then, in December 2017, Veeco revealed that a Chinese court ruled that certain Veeco products infringed Advanced Micro-Fabrication Equipment, Inc.’s patents and ordered Veeco to stop making and selling those products in China. Veeco shares currently trade at $11.70 per share, a 63% decline from the approximately $32 per share price on the date of the merger.