BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased Quantum Corporation (“Quantum” or the “Company”) (NYSE: QTM) securities between May 10, 2016 and February 7, 2018, inclusive (the “Class Period”). Quantum investors have until April 16, 2017 to file a lead plaintiff motion.
Investors that suffered losses on their Quantum investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
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.
If you purchased shares of Quantum during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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