LOS ANGELES, Dec. 28, 2023 (GLOBE NEWSWIRE) — Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming February 12, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Mercury Systems, Inc. (“Mercury” or the “Company”) (NASDAQ: MRCY) common stock between December 7, 2020 and June 23, 2023, inclusive (the “Class Period”).
If you suffered a loss on your Mercury investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/mercury-systems-inc-1/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On July 26, 2022, Glasshouse Research published a report detailing how its “analysis on [Mercury Systems] will reveal how management has used accounting gimmicks to obfuscate true economic earnings while concealing the decay of its core company.” Specifically, the report stated that the Company’s management has “prematurely recognized revenue on significant projects boosting both revenue and earnings unsustainably” while also using recent acquisitions to conceal true earnings “with material non-GAAP exclusions,” and that the Company’s free-cash-flow is “grossly overstated as the company has been stifling its vendors to conserve cash.” On this news, Mercury Systems’ stock price fell $4.87, or 7.8%, to close at $57.26 per share on July 26, 2022, thereby injuring investors.
Then, on May 2, 2023, after the market closed, Mercury announced weak third quarter 2023 earnings and lower margins, causing the Company to cut its full year 2023 guidance. On this news, Mercury’s stock price fell $7.84, or 17.3%, to close at $37.44 per share on May 3, 2023.
Then, on June 23, 2023, Mercury announced that its CEO had abruptly resigned and that the Company’s recent strategic review of acquisition alternatives had been unsuccessful. On this news, Mercury’s stock price fell $3.37, or 9.6%, to close at $31.50 per share on June 26, 2023, thereby injuring investors further.
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 to investors that: (1) Mercury’s serial acquiror strategy was not working and the company was using improper revenue recognition practices such as changing to long-term contracts to mask deteriorating organic growth; (2) the Acquisition caused POC to lose its small business accreditation, which prevented POC from winning contracts that made up a large portion of its historical business; (3) Mercury had at least twenty programs that were suffering and not performing well; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Mercury common stock during the Class Period, you may move the Court no later than February 12, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com
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