Grabar Law Office is investigating whether certain officers and directors of Photrnics, Inc. (NASDAQ: PLAB) breached the fiduciary duties they owed to the Company and its shareholders.

Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, China, Korea, Europe, and internationally. It offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, and FDP substrates. The company also provides electrical and optical components. It sells its products to semiconductor and FPD designers, manufacturers, and foundries through its sales personnel and customer service representatives.

If you purchased Photronics, Inc. (NASDAQ: PLAB) stock before December 10, 2025, and continue to hold your shares today, you may have the right to pursue claims on behalf of the Company. Through a shareholder derivative action, eligible shareholders may seek corporate governance reforms, the recovery of damages suffered by the Company, and, if appropriate, a court-approved incentive award, all at no cost to the shareholder.

What Is This Investigation About?

Grabar Law Office is investigating whether certain Photronics officers and directors caused the Company to issue materially false and misleading public statements regarding the Company's business, growth prospects, revenue outlook, and demand for its high-end integrated circuit ("IC") photomask products, while allegedly failing to disclose known operational headwinds affecting those projections. The recently filed federal securities class action alleges that the Company's statements concerning demand, customer pipeline, margins, and anticipated growth omitted material information regarding bottlenecks in customer design releases and other adverse conditions affecting the business.

Why Is Grabar Law Office Investigating?

According to the federal securities class action complaint filed in the United States District Court for the District of Connecticut, investors allege that during the period between December 10, 2025 and May 27, 2026, Photronics and certain executives repeatedly represented that demand for the Company's high-end IC photomask products remained strong, that customer order patterns were robust, and that the Company was well positioned to benefit from increasing demand for advanced semiconductor manufacturing. The complaint further alleges that these statements were materially false or misleading because the Company allegedly knew, but failed to disclose, that customer design releases had stalled due to elevated foundry utilization, memory-related cost pressures, and other operational bottlenecks that impaired the Company's growth expectations.

The Alleged Corrective Disclosure

On May 28, 2026, Photronics announced its fiscal second-quarter 2026 financial results.

Among other things, the Company reported:

• Revenue below prior expectations;
• An approximately 11% sequential decline in IC revenue;
• Third-quarter guidance below market expectations; and
• That anticipated seasonal recovery following the Chinese New Year holiday had failed to materialize because of delays in customer design releases, elevated foundry utilization rates, memory supply constraints, and geopolitical uncertainty.

Following these disclosures, Photronics' common stock fell from $53.51 per share on May 27, 2026, to $34.02 per share on May 28, 2026, a decline of approximately 36.4% in a single trading day, according to the complaint.

Why A Shareholder Derivative Investigation?

If corporate fiduciaries breached their duties to Photronics, a derivative action may seek:

• Recovery of damages suffered by the Company;
• Improvements to corporate governance;
• Enhanced internal controls and disclosure practices;
• Board-level reforms designed to reduce future risk;
• Reimbursement of compensation or other remedies where appropriate.

Who May Be Eligible?

You may be able to pursue a derivative action if:

• You purchased Photronics stock before December 10, 2025;
• You continue to own Photronics shares today; and
• You wish to help improve corporate governance while seeking recovery on behalf of the Company, and while seeking a court approved incentive award on your own behalf.

Why Choose Grabar Law Office?

Grabar Law Office has extensive experience representing institutional and individual investors in shareholder derivative litigation, securities litigation, corporate governance matters, fiduciary duty actions, as well as antitrust actions throughout the United States.

Contact Us

For additional information concerning this investigation, please contact us:

Joshua H. Grabar, Esq.
Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, PA 19103
(267) 507-6085
jgrabar@grabarlaw.com
www.grabarlaw.com

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