Quantum(US:QMCO) Globenewswire·2025-10-06 03:20Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Quantum Corporation due to allegations of improper revenue recognition and subsequent financial restatements, which have led to significant stock price declines and investor losses [3][5][6]. Group 1: Legal Investigation and Class Action - Faruqi & Faruqi is encouraging investors who suffered losses in Quantum Corporation to contact them for discussing legal options, particularly regarding a federal securities class action with a deadline of November 3, 2025, to seek the role of lead plaintiff [3][10]. - The lawsuit claims that Quantum Corporation made false and misleading statements regarding its financial health, specifically related to revenue recognition for the fiscal year ending March 31, 2025, necessitating a restatement of financial statements [5][6]. Group 2: Financial Impact and Stock Performance - On June 30, 2025, Quantum disclosed it would be unable to file its annual financial report on time, leading to a stock price drop of $1.00, or 10.03%, closing at $8.97 per share [6]. - Following an announcement on August 8, 2025, regarding deficiencies in internal controls, Quantum's stock fell by $0.14, or 1.79%, to close at $7.66 per share [8]. - After the resignation of the CEO on August 18, 2025, Quantum's stock price further declined by $0.61, or 8.2%, closing at $6.83 per share [8]. Group 3: Company Background and Recovery Efforts - Faruqi & Faruqi, LLP has a history of recovering hundreds of millions of dollars for investors since its establishment in 1995, indicating a strong track record in securities litigation [4]. - The firm is also seeking information from whistleblowers, former employees, and shareholders regarding Quantum Corporation's conduct to strengthen the case [10].