1. Class action lawsuit filed against Quantum Corporation for financial misreporting. 2. Allegations include improper revenue recognition and internal control deficiencies. 3. Quantum plans to restate previous financial statements, lowering revenues by $3.9 million. 4. CFO resignation announced amid ongoing financial scrutiny. 5. Investors may join the class action for potential recovery of losses.
The allegations of financial misreporting and a CFO resignation are highly damaging. Historical precedent shows that similar cases often lead to stock price declines.
Legal challenges significantly impact investor confidence, especially in smaller firms like Quantum. The potential restatement of financials amplifies concerns over management credibility.
Immediate investor anxiety over lawsuits can lead to rapid stock sell-offs. Similar incidents have caused significant short-term volatility in smaller firms.
SAN DIEGO, Sept. 4, 2025 /PRNewswire/ -- Robbins LLP informs stockholders that a class action was filed on behalf of persons and entities that purchased or otherwise acquired Quantum Corporation (NASDAQ:QMCO) securities between November 15, 2024 and August 18, 2025. Quantum Corporation is a technology company focused on data management solutions.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Quantum Corporation (QMCO) Had Deficiencies in its Internal Control Over Financial Reporting
According to the complaint, during the class period, defendants failed to disclose that: (1) Quantum Corporation improperly recognized revenue during the fiscal year ended March 31, 2025; (2) as a result, Quantum Corporation would need to restate its previously filed financial statements for the fiscal third quarter ended December 31, 2024; and (3) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
Plaintiff alleges that on August 8, 2025, Quantum Corporation announced its 3Q24 financials could not be relied upon and would be restated to show a new decrease of approximately $3.9 million in revenue, and that there were deficiencies in the Company's internal control over financial reporting and the Company's disclosure controls and procedures that constituted material weaknesses as of December 31, 2024 and March 31, 2025. Then, on August 18, 2025, the Company disclosed its CFO would be resigning, after holding the position for less than five months.
What Now: You may be eligible to participate in the class action against Quantum Corporation. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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SOURCE Robbins LLP