ALT5 Sigma Corporation(US:ALTS) Prnewswire·2025-12-12 19:23Core Viewpoint - Hagens Berman has initiated an investigation into ALT5 Sigma Corporation due to potential false financial reporting and governance issues, which have led to a nearly 80% decline in stock value [1][2]. Investigation Focus - The investigation centers on whether ALT5 misled investors regarding the stability of its financial reporting and internal controls, particularly related to its $1.5 billion registered offering in August 2025 [2]. - The failure to file the Q3 report on time has resulted in a Nasdaq Non-Compliance Notice issued on December 2, 2025, alongside issues stemming from a subsidiary's criminal judgment for money laundering and a management purge [2][4]. Governance Concerns - There are discrepancies in the reporting timelines for the auditor's resignation and the CEO's suspension, suggesting systemic failures in corporate governance [4]. - The CEO, Peter Tassiopoulos, was suspended effective October 16, 2025, but internal communications indicated he was on leave as early as September 4, 2025, raising questions about timely disclosures [6]. Auditor and Executive Changes - The auditor, William Hudgens, resigned effective November 21, 2025, but had reportedly informed the company of his intention to step down before June 30, 2025, leading to questions about the delay in disclosure [6]. - The Audit Committee Chair resigned on November 25, 2025, following the formal Nasdaq Non-Compliance Notice [6]. Criminal Liability and Financial Reporting - The investigation highlights the failure to disclose a subsidiary's money laundering judgment and the company's ongoing review of potential misstatements in financial statements, which raises concerns about the integrity of internal controls and compliance with GAAP [6].