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Maravai LifeSciences Holdings, Inc. (MRVI) Faces Securities Class Action After Delaying Q4 and FY 2024 Earnings Release, Admitting to Improper Revenue Recognition Hagens Berman
Globe Newswire 5-Mar-2025 1:25 PM
SAN FRANCISCO, March 05, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed against Maravai LifeSciences (NASDAQ:MRVI), a global provider of life science reagents and services to researchers and biotech innovators. The suit, captioned Nelson v. Maravai Lifesciences Holdings, et al., No. 3:25-cv-00499-AGS-AHG (S.D. Cal.), represents investors who purchased Maravai securities between August 7, 2024 and February 24, 2025.
Hagens Berman is investigating the alleged claims and urges Maravai investors who suffered substantial losses to submit your losses now.
Maravai LifeSciences Holdings, Inc. (MRVI) Securities Class Action:
The litigation is focused on the propriety of Maravai's assurances that its financial statements are prepared in accordance with applicable accounting rules and that its internal controls over financial reporting are sufficient.
The complaint alleges that Maravai made false and misleading statements while failing to disclose crucial information. Specifically, the suit contends that the company failed to disclose to investors that:
It lacked adequate internal controls over financial reporting related to revenue recognition;
As a result, it inaccurately recognized revenue on certain transactions during fiscal 2024; and
Its goodwill was overstated.
The company's assurances came into question on Feb. 25, 2025, when Maravai announced that it postponed its Q4 and FY 2024 earnings release and conference call scheduled for that day.
Maravai revealed that it:
is assessing a goodwill impairment charge associated with a previous acquisition;
overstated Q2 2024 revenue by approximately $3.9 million as a result of its recording the amount upon shipment in the final week of the quarter rather than on receipt by the customer; and
is assessing the sufficiency of its internal controls over financial reporting, including internal controls over revenue recognition.
This news sent the price of Maravai shares down over 21% on Feb. 25, 2025, with one analyst (Baird) slashing its rating from outperform to neutral and its price target from $9 to $3.
"We are investigating whether Maravai may have intentionally recorded unearned revenues," said Reed Kathrein, the Hagens Berman Partner leading the firm's probe.
If you invested in Maravai and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the Maravai case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Maravai should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email MRVI@hbsslaw.com.
About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
