SAN FRANCISCO, March 18, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Luna Innovations Incorporated (NASDAQ: LUNA) investors who suffered substantial losses to submit your losses now.
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Luna Innovations Incorporated (LUNA) Investigation:
On Mar. 12, 2024, Luna Innovations shares sharply declined after the fiber optic test and control company disclosed that it would need to restate its financial statements for the second and third quarters of 2023 due to revenue recognition errors.
Suspicions about Luna’s financial reporting first emerged on Oct. 17, 2023, when the company announced that its Chief Financial Officer (Eugene Nestro) abruptly left his position effective Oct. 16, 2023. No explanation for Nestro’s departure was given at the time.
But the true state of Luna’s internal controls became clearer when, after the market closed on Mar. 12, 2024, Luna advised investors that it would not timely file its 2023 annual report and that its previously reported financial results for Q2 2023 and Q3 2023 could no longer be relied upon.
The company explained that the reporting delay and need to restate follows the preliminary findings of an independent review by a Special Committee of the Board of Directors, which is currently examining “certain transactions for which revenue was recognized in the second and third quarters of 2023 that did not qualify for revenue recognition under U.S. generally accepted accounting principles.”
The company stated it has not yet ascertained the complete repercussions of these findings on its financial statements for other periods. In addition, Luna is in the process of developing a remediation plan to address the identified material weaknesses. The company stated it will issue restated financial results for the affected periods and disclose the full extent of the internal control weaknesses when it reports the restated financials.
These revelations drove the price of Luna shares sharply lower during after-hours trading on Mar. 12, 2024.
“We’re investigating whether Luna management may have possibly engaged in improper revenue recognition practices in violation of GAAP and the U.S. securities laws,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Luna Innovations and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman. »
If you’d like more information and answers to frequently asked questions about the Luna Innovations investigation, read more »
Whistleblowers: Persons with non-public information regarding Luna Innovations 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 LUNA@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895
