NEW YORK, April 02, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired Luna Innovations Incorporated (“Luna” or the “Company”) (NYSE: LUNA) securities between August 11, 2023 and March 25, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint in the lawsuit alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that the Defendants failed to disclose to investors that: (1) Luna financial statements from August 10, 2023 to the present included false figures as a result of improper revenue recognition; (2) as a result, Luna would need to restate its previously filed financial statements from August 10, 2023 to November 14, 2023; (3) Luna lacked adequate internal controls; and (4) as a result, Defendants’ statements about Luna’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
The Complaint also alleges that on March 12, 2024, after the market closed, Luna filed with the SEC a current report on Form 8-K announcing it would need to restate its financial statements for the second and third quarters of 2023. The Complaint further alleges that on March 12, 2024, the Company also filed with the SEC a late filing notice on Form NT 10-K indicating that a Special Committee of the Company's Board of Directors is reviewing "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 Complaint alleges that on this news, the price of Luna stock fell $2.24 per share, or 35.78%, to close at $4.02 on March 13, 2024. The Complaint also alleges that on March 25, 2024, after the market closed, the Company filed with the SEC a current report on Form 8-K which announced that the Company's President and CEO had retired, effective immediately. According to the Complaint, this retirement was a result of the misconduct detailed in the Complaint. On this news, the price of Luna stock fell by $0.41 per share, or 11.54%, to close at $3.14 on March 26, 2024.
Investors who purchased or otherwise acquired securities of Luna should contact the Firm prior to the May 31, 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.
