NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Quantum Corporation (“Quantum” or the “Company”) (NYSE:QTM) of the April 16, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Quantum stock or options between May 10, 2016 and February 7, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/QTM. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who acquired Quantum securities between May 10, 2016 and February 7, 2018 (the “Class Period”). The case, Nabhan v. Quantum Corp. et al, No. 3:18-cv-00925 was filed on February 13, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Quantum was inappropriately recognizing certain revenues since at least April 2016; (2) the Company lacked adequate controls over accounting and financial reporting; (3) consequently, the Company was subject to increased regulatory scrutiny and potential fines; and, (4) as a result of the foregoing, the Company’s statements about its business, operations, and prospects were materially false and/or misleading.
Specifically, on February 8, 2018, the Company issued a press release announcing that it was “postponing release of its fiscal third quarter 2018 results.” The press release further explained that the postponement followed a subpoena received from the U.S. Securities and Exchange Commission on January 11, 2018, regarding certain of the Company’s accounting matters and internal controls relating to revenue recognition.
On this news, Quantum’s share price fell from $5.57 per share on February 7, 2018 to a closing price of $3.90 on February 8, 2018—a $1.67 or a 29.98% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Quantum’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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