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SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims on Behalf of Investors of Mercury Systems, Inc. - MRCY
Globe Newswire 2-Jan-2024 2:55 PM
NEW YORK, Jan. 02, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Mercury Systems, Inc. ("Mercury" or the "Company") (NASDAQ:MRCY). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether Mercury and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On July 26, 2022, Glasshouse Research published a report alleging that: (i) Mercury overstated organic growth; (ii) the company's acquisition of Physical Optics Corporation had been a "disaster" which was used to obscure Mercury's financial results; (iii) IMPACT, its highly touted strategic growth initiative, was a failure; and (iv) Mercury's management prematurely recognized revenue on significant projects to artificially boost both revenue and earnings unsustainably which also caused the Company's working capital and unbilled receivables to balloon far beyond industry norms.
On this news, Mercury's stock price fell $4.87 per share, or 7.8%, to close at $57.26 per share on July 26, 2022.
Then, on May 2, 2023, Mercury announced weak third quarter 2023 earnings and lower margins that caused the Company to slash its full year 2023 guidance. Mercury also disclosed that approximately a dozen of its 300-plus active programs had been negatively affected by higher costs related to labor and supply chain inefficiencies, manufacturing constraints, and inflation.
On this news, Mercury's stock price fell $7.84 per share, or 17.3%, to close at $37.44 per share on May 3, 2023.
Finally, on June 23, 2023, Mercury disclosed that its Chief Executive Officer Mark Aslett had abruptly resigned and that the Company's recent strategic review of acquisition alternatives did not result in the sale of the Company.
On this news, Mercury's stock price fell $3.37 per share, or 9.6%, to close at $31.50 per share on June 26, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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