Quantum(US:QMCO) Prnewswire·2025-10-28 13:55Core 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 [2][3][4]. Group 1: Allegations and Financial Impact - Quantum Corporation is accused of improperly recognizing revenue for the fiscal year ending March 31, 2025, necessitating a restatement of its financial statements for the third quarter of fiscal 2024 [3]. - Following the announcement on June 30, 2025, regarding the inability to file its annual financial report, Quantum's stock price dropped by $1.00, or 10.03%, closing at $8.97 per share [4]. - On August 8, 2025, Quantum stated that its third quarter 2024 financial statements should no longer be relied upon, revealing a revenue decrease of approximately $3.9 million [5]. Group 2: Leadership Changes and Further Stock Declines - After the announcement on August 18, 2025, regarding the resignation of its CEO after only five months, Quantum's stock price fell by $0.61, or 8.2%, closing at $6.83 per share [6]. - The lawsuit claims that the misleading statements made by Quantum's management led to investor damages when the true financial situation was revealed [3]. Group 3: Legal Proceedings and Investor Actions - Investors who purchased Quantum securities between November 15, 2024, and August 18, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights, with a deadline of November 3, 2025, to seek lead plaintiff status in the class action [2][7]. - The firm has a history of recovering hundreds of millions of dollars for investors since its establishment in 1995 [2].