BENSALEM, Pa.--(BUSINESS WIRE)--Nov 8, 2024--
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Flux Power Holdings, Inc. (“Flux Power” or the “Company”) (NASDAQ: FLUX ) securities between November 11, 2022 and September 30, 2024, inclusive (the “Class Period”). Flux Power investors have until December 31, 2024 to file a lead plaintiff motion.
Investors suffering losses on their Flux Power investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On September 5, 2024, Flux Power disclosed that previously issued audited consolidated financial statements as of and for the fiscal year ended June 30, 2023 and the unaudited consolidated financial statements as of and for the quarters ended September 30, 2023, December 31, 2023, and March 31, 2024 should no longer be relied upon due to errors relating to the improper accounting for inventory resulting in an overstatement of inventory, current assets, total assets and accumulated deficit, an understatement of cost of sales and net loss, and overstatement of gross profit. The Company further stated that a material weakness exists in its disclosure controls and procedures and the Company’s internal control over financial reporting.
On this news, Flux Power’s stock price fell $0.17, or 5.4%, to close at $3.00 on September 6, 2024, thereby injuring investors.
Then, on September 30, 2024, the Company disclosed that it would be unable to timely file its Annual Report for the fiscal year ended June 30, 2024. On this news, Flux Power’s stock price fell $0.18, or 5.9%, to close at $2.86 per share on October 1, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Flux Power’s financial statements from November 10, 2022 to the present included, among other things, overstated inventory, gross profit current assets, and total assets; (2) Flux understated cost of sales, net loss; (3) as a result, Flux Power would need to restate its previously filed financial statements from November 10, 2022 to the present; (4) Flux Power understated internal control weaknesses or stated that it had adequate internal controls when in fact it did not; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Flux Power securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com:https://www.businesswire.com/news/home/20241108489387/en/
CONTACT: Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
KEYWORD: PENNSYLVANIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL
SOURCE: Law Offices of Howard G. Smith
Copyright Business Wire 2024.
PUB: 11/08/2024 01:10 PM/DISC: 11/08/2024 01:08 PM
http://www.businesswire.com/news/home/20241108489387/en