SAN FRANCISCO, May 14, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges Luna Innovations Incorporated (NASDAQ: LUNA) investors who suffered substantial losses to submit your losses now.
Current Class Period: Aug. 11, 2023 – Mar. 25, 2024
Lead Plaintiff Deadline: May 31, 2024
Visit: www.hbsslaw.com/investor-fraud/LUNA
Contact the Firm Now: LUNA@hbsslaw.com
844-916-0895
Luna Innovations Incorporated (LUNA) Class Action:
Luna Innovations, the Roanoke-based fiber optics company, is in freefall. A cascade of leadership exits, a class-action, and the ongoing fallout from accounting errors have left the company reeling and shocked its investors.
Executive Exodus Raises Questions
On May 1, 2024, just after the market closed, Luna announced the abrupt departures of both its Chief Technology Officer, Brian Soller, and its Chief Financial Officer, George Gomez-Quintero. Soller’s termination was deemed “for cause,” while Gomez-Quintero resigned without a severance package.
These departures follow the mysterious exit of CEO Scott Graeff in March, whose separation agreement now faces potential clawbacks due to alleged misconduct. Additionally, seven other Luna employees have been fired.
Accounting Errors Cast Doubt on Past Performance
The source of much of the turmoil lies in critical accounting errors related to revenue recognition. Luna’s Audit Committee, with the help of external advisors, discovered these errors during a review of financial statements dating back to Mar. 31, 2022. These errors resulted in misstated financial results, rendering previously issued reports, press releases, and any communication regarding the affected periods unreliable.
Restatement Scope Widens, Stock Price Plummets
Initially, Luna only planned to restate financials for two quarters in 2023. However, the magnitude of the errors necessitated a wider scope, now encompassing all of 2022, the first quarter of 2023, and the previously mentioned quarters. The company’s disclosures have caused a massive selloff, sending Luna’s share price plummeting. Since the initial disclosure of accounting issues on Mar. 12, 2024, the stock has lost more than two-thirds of its value. The full extent of the financial misstatements remains unclear.
Investor Lawsuit Looms
Luna’s improper revenue recognition has also led to an investor class action. While Hagens Berman is investigating the expansion of the current period, the existing securities class action brought on behalf of Luna investors against both Luna and its senior executives alleges that Defendants made misleading statements and failed to disclose that: (1) Luna’s financial statements from Aug. 10, 2023 to the present included false figures as a result of improper revenue recognition; (2) as a result, Luna would be required to restate financial statements filed during Aug. 10, 2023 through Nov. 14, 2023; and (3) it lacked adequate internal controls.
“We are digging deeper into the potential fraud in light of Luna’s most recent disclosure, considering a longer class period,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Luna Innovations and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman »
If you’d like more information and answers to frequently asked questions about the Luna Innovations case and our investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
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