SAN FRANCISCO, March 21, 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:
Share prices in fiber optic test and control company Luna Innovations are down over 45% over the past month, after the Roanoke, Virginia-based company disclosed on Mar. 12, 2024 that it would need to restate its financial statements for the second and third quarters of 2023 due to revenue recognition errors.
The drag on Luna’s share price will likely continue until the company reveals the extent and scope of its admitted improper revenue recognition.
Cracks in Luna’s internal controls over financial reporting seemingly first became visible on Oct. 17, 2023, when the company announced that its Chief Financial Officer Eugene Nestro abruptly left his position effective Oct. 16, 2023. The company provided no explanation for Nestro’s sudden departure.
Then, on Mar. 12, 2024, Luna shocked investors when it disclosed 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.
As of Mar. 20, 2024, the company has still not filed its 2023 annual report or described the nature and magnitude of the restatement.
“We’re investigating whether Luna management may have possibly manipulated revenue to boost the appearance of growth and profitability,” 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
