Symbotic (US:SYM) GlobeNewswire News Room·2025-01-05 14:20Core Viewpoint - A lawsuit has been filed against Symbotic Inc. and its senior executives for potential violations of federal securities laws, following significant financial reporting issues that led to a substantial decline in stock price [1][2][5]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the District of Massachusetts, captioned Decker v. Symbotic Inc., et al., No. 24-cv-12976, with investors having until February 3, 2025, to seek lead plaintiff status [2]. - Claims are made under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Symbotic securities [2]. Group 2: Company Background - Symbotic Inc. specializes in developing and operating robotics systems aimed at automating and optimizing warehouse and supply chain operations for major retailers and distributors [3]. Group 3: Financial Reporting Issues - On November 27, 2024, Symbotic announced a delay in filing its Form 10-K for fiscal year 2024 due to errors in revenue recognition and material weaknesses in internal controls over financial reporting [4]. - The company identified issues related to premature expense recognition and unbillable cost overruns, leading to an estimated $30–$40 million reduction in system revenue, gross profit, and adjusted EBITDA for fiscal year 2024 [4]. - Revenue outlook for the first quarter of fiscal 2025 was revised down to $480–$500 million from $495–$515 million, and adjusted EBITDA was reduced to $12–16 million from $27–31 million [4]. Group 4: Market Reaction - Following the announcement of the financial reporting issues, Symbotic's stock price declined over 35% during trading on November 27, 2024 [5].