LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Northern District of California (Docket Number 3:18-cv-00925) on behalf of persons and entities that acquired Quantum Corporation (“Quantum” or the “Company”) (NYSE: QTM) securities between May 10, 2016 and February 7, 2018, inclusive (the “Class Period”), asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Investors are hereby notified that they have 60 days from the date of this notice to move the Court to serve as lead plaintiff in this action.
Investors suffering losses on their Quantum investments are encouraged to contact Lesley Portnoy of GPM to discuss their legal rights at 310-201-9150 or by email to email@example.com, or visit the Quantum Corporation case page on our website at www.glancylaw.com/case/quantum-corporation.
On February 8, 2018 Quantum issued a press release entitled “Quantum Corporation Postpones Earnings Conference Call.” Therein, the Company stated that it was “postponing release of its fiscal third quarter 2018 results and its earnings conference call, which were scheduled for this afternoon. The press release further detailed the cause for the postponement of earnings, “[o]n Jan. 11, 2018, Quantum received a subpoena from the SEC regarding its accounting practices and internal controls related to revenue recognition for transactions commencing April 1, 2016. Following receipt of the SEC subpoena, the company’s audit committee began an independent investigation with the assistance of independent advisors, which is currently in process. Because the audit committee’s investigation is ongoing, Quantum decided it was prudent to postpone its quarterly results release and conference call, pending conclusion of the investigation. The company is cooperating with the SEC and cannot predict the timing of completion or outcome of either the audit committee’s investigation or the SEC’s inquiry at this time.”
On this news, the Company’s stock price fell $1.67 per share, or nearly 30%, to close at $3.90 per share on February 8, 2018, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that Quantum was inappropriately recognizing certain revenues since at least April 2016; (2) that the Company lacked adequate controls over accounting and financial reporting; (3) that as a result the Company was subject to increased regulatory scrutiny and potential fines; and, (4) that, as a result of the foregoing, Defendants’ statements about Quantum’ business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
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If you purchased Quantum securities during the Class Period, you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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