Shares in Cree plummeted 19 percent, or more than $3 a share, on Wednesday even though the company announced record profits for the year and a strong quarter.

Adams Harkness downgraded the stock to “market perform” from “buy”.

The company said in a conference call that legal costs from the law suits filed by former CEO Eric Hunter and his wife plus increased competition would lower profits in future quarters.

As a result, Cree stock dropped to a nine-month low of $13.43. The stock has dropped by nearly half since the Hunters announced their suit. A number of class action suits also have been filed.

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