NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Nevada on behalf of those who acquired Flux Power Holdings, Inc. (“Flux Power” or the “Company”) (NASDAQ: FLUX) securities during the period of November 11, 2022 to September 30, 2024, inclusive (“the Class Period”). Investors have until December 31, 2024, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On September 5, 2024, after the market closed, Flux Power filed with the SEC a current report on Form 8-K announcing that it would need to restate certain parts of its previous financial statements (the “Restatement Announcement”). The Restatement Announcement disclosed that the previously issued audited consolidated financial statements “should no longer be relied upon because of errors in such financial statements relating to the improper accounting for inventory and a restatement should be undertaken.” The Restatement Announcement further stated that “the Company’s management has concluded that considering the errors described above, this represents and additional material weakness in the Company’s disclosure controls and procedures and the Company’s internal control over financial reporting.” In addition, the Restatement Announcement claimed that “the inventory error discussed above led to non-compliance with certain requirements under the Company’s Loan and Security Agreement with Gibraltar Business Capital, LLC.” On this news, the price of Flux Power stock fell by $0.17, or 5.36%, from $3.17 per share on September 4, 2024, to close at $3.00 on September 5, 2024.
Then, on September 30, 2024, Flux Power filed with the SEC a notification of late filing on Form 12b-25 (the “Late Filing Notice”). Following this news, the price of Flux Power stock fell by $0.19, or 6.25%, from $3.04 per share on September 30, 2024, to close at $2.85 on October 1, 2024.
The lawsuit alleges that during the Class Period, Flux Power had made false and/or misleading statements and/or failed to disclosed the following: (1) Flux Power’s financial statements since November 10, 2022 included overstated inventory, gross profit, current assets, and total assets; (2) Flux Power understated cost of sales and net loss; (3) as a result, Flux Power would need to restate its previously filed financial statements from November 10, 2022 to the present; and (4) Flux Power understated internal control weaknesses.
If you purchased or otherwise acquired Flux Power securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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