NEW YORK, Dec. 14, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities who purchased or otherwise acquired Mercury Systems, Inc. (“Mercury” or the “Company”) (NASDAQ: MRCY) securities between December 7, 2020 and June 23, 2023, inclusive (the “Class Period”).
The Complaint alleges that Defendants repeatedly touted the success of the Company’s growth, painting a false rosy financial picture for investors. Defendants repeatedly misled investors to believe that their growth was organic by misrepresenting several elements of Mercury’s business, including by hiding that Mercury had switched from “point-in-time” to “long-term contracts” in order to improperly boost reported revenues and that several of Mercury’s projects were in significant distress, including projects related to Mercury’s acquisition of Physical Optics Corporation. Mercury also lied to investors about its strategic growth initiative, 1MPACT, which was designed to improve profit margins but unbeknownst to investors was used to disguise regular expenses as restructuring costs, enabling Mercury to claim that recurring expenses were one-time costs.
On July 26, 2022, Glasshouse Research issued a short seller report that revealed the truth of these issues. The issuance of the report from Glasshouse Research caused Mercury’s stock to drop 7.8%. The full truth of the state of Mercury’s business was then revealed piecemeal to the market through several partial disclosures that took place between July 26, 2022 and June 23, 2023. During this time, the Company’s share price declined nearly 50%, wiping out billions of dollars in market capitalization and damaging investors.
Investors who purchased or otherwise acquired shares of Mercury should contact the Firm prior to the February 12, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
