Quantum(US:QMCO) Globenewswire·2025-10-30 15:18Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Quantum Corporation due to allegations of improper revenue recognition and related financial misstatements, urging affected investors to come forward before the November 3, 2025 deadline for lead plaintiff applications in a federal securities class action [4][6][10]. Group 1: Allegations and Financial Impact - The lawsuit claims that Quantum Corporation made false and misleading statements regarding its revenue recognition for the fiscal year ending March 31, 2025, necessitating a restatement of its financial statements for the third quarter of 2024 [6]. - On June 30, 2025, Quantum announced it could not timely file its annual financial report, leading to a stock price drop of $1.00, or 10.03%, closing at $8.97 per share [7]. - 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, which caused the stock price to fall by $0.14, or 1.79%, to $7.66 per share [8]. - Following the announcement of the CEO's resignation on August 18, 2025, Quantum's stock price dropped by $0.61, or 8.2%, closing at $6.83 per share [9]. Group 2: Legal Proceedings and Investor Actions - The firm encourages investors who suffered losses to contact them directly to discuss their legal rights and options [1][11]. - The lead plaintiff in the class action will be the investor with the largest financial interest who is also typical of the class members, with the option for any member to move the court to serve as lead plaintiff [10]. - Faruqi & Faruqi is also seeking information from whistleblowers, former employees, and shareholders regarding Quantum Corporation's conduct [11].