Pomerantz Filed Class Action Lawsuit Vs. Quantum

Pomerantz LLP announces that a class action lawsuit has been filed against Quantum Corporation and certain of its officers.  

The class action, filed in United States District Court, for the Northern District of California, is on behalf of a class consisting of investors who purchased or otherwise acquired Quantum securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.

If you are a shareholder who purchased Quantum securities between July 27, 2016, and February 7, 2018, both dates inclusive, you have until April 16, 2018, to ask the Court to appoint you as lead plaintiff for the class. 

The complaint alleges that throughout the class period, defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies.

Specifically, 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, before trading had opened, Quantum disclosed that it had received a subpoena from the SEC on January 11, 2018 “regarding its accounting practices and internal controls related to revenue recognition for transactions commencing April 1, 2016,” prompting an internal investigation by Quantum’s audit committee, which remains ongoing. As a result, the company further announced that it would postpone the release of its fiscal third quarter 2018 results and earnings 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.