Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Quantum Corporation [NYSE: QTM]
Oklahoma City, OK (February 15, 2018) – On February 13, 2018, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against Quantum Corporation (NYSE: QTM). 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 July 27, 2016 through February 7, 2018. More specifically, this litigation alleges that Defendants made false and/or misleading statements and/or failed to disclose that (i) Quantum had inappropriately accounted for revenue relating to certain transactions commencing April 1, 2016; (ii) the Company lacked adequate internal controls over financial reporting; and (iii) that as a result of the foregoing, Quantum’s publicly disseminated financial statements were materially false and misleading.
On February 8, 2018, Quantum disclosed that in January of 2018, the Company received a subpoena from the Securities and Exchange Commission (SEC) related to revenue recognition for certain transactions, prompting an internal investigation by Quantum, which remains ongoing. As a result, the Company announced that it “is postponing release of its fiscal third quarter 2018 results and its earnings conference call.” On this news, Quantum’s share price plunged 29.9% to close at $3.90 on February 8, 2018, causing millions of dollars in losses to investors.
Plaintiff seeks to recover damages on behalf of all Quantum Corporation 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, April 16, 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.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to rkh@federmanlaw.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.