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Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Mercury Systems, Inc.

To join this class action, please complete the following Investor Certification.  

Mercury Systems, Inc. (NASDAQ: MRCY) Investor Certification

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Oklahoma City, OK (July 11, 2018) – On July 10, 2018, a securities class action lawsuit was filed in the United States District Court for the District of Massachusetts against Mercury Systems, Inc. (NASDAQ: MRCY).  The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is October 24, 2017 through April 24, 2018.  More specifically, this litigation was filed because throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Mercury’s decision to in-source processing was adversely impacting Mercury’s operating margins and free cash-flow generation and conversion; (2) Mercury’s model was becoming structurally more working capital intensive; and (3) as a result of the foregoing, Mercury’s public statements were materially false and misleading at all relevant times.

On April 24, 2018, Mercury announced its financial and operating results for the quarter ended March 31, 2018.  With respect to its free cash flow for the quarter, Mercury reported a net outflow of $2.6 million, compared to a net inflow of $11.9 million for the same period in the prior year.  The Company’s Chief Financial Officer in a conference call discussing Mercury’s quarterly results, stated that Mercury had been aware for the “last couple quarters” of certain customer trends in managing cash in their accounts payable and of Mercury’s need to reduce account payables related to its inventory build, both of which directly impacted Mercury’s cash flow for the quarter ended March 31, 2018.  Following this news, Mercury’s share price fell $8.02, to close at $34.91 on April 25, 2018.

Plaintiff seeks to recover damages on behalf of all Mercury Systems, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above.  You may move the Court no later than Monday, September 10, 2018 to serve as a lead plaintiff for the entire Class.  However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact:  Robin Hester at rkh@federmanlaw.com

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