SAN FRANCISCO--(BUSINESS WIRE)--Hagens Berman announces that the firm has filed a new class action lawsuit against Luna Innovations Incorporated (NASDAQ: LUNA) and certain of its senior executives.
The new complaint extends the alleged fraudulent period in the pending litigation against Luna Innovations, contending that Luna’s stock was artificially inflated by Defendants’ alleged fraud from May 16, 2022 through Apr. 19, 2024, inclusive (“Extended Class Period”).
Lead plaintiff motions for the Luna class action litigation must still be filed with the Court no later than May 31, 2024. Hagens Berman therefore urges investors who suffered substantial losses on purchases of Luna securities during the Extended Class Period and who wish to serve as lead plaintiff of the Luna litigation to contact Hagens Berman now.
Extended Alleged Class Period: May 16, 2022 – Apr. 19, 2024
Lead Plaintiff Deadline: May 31, 2024
Website: www.hbsslaw.com/investor-fraud/LUNA
Contact Email: LUNA@hbsslaw.com Phone: 844-916-0895
Hagens Berman’s New LUNA Securities Fraud Class Action Alleging Extended Class Period:
The new class action, filed in the United States District Court for the Central District of California, and captioned Thompson v. Luna Innovations Incorporated, et al., Case No. 2:24-cv-04068, seeks to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
The new class action is related to pending securities class action litigation against Luna in the Central District of California, Karzoun v. Luna Innovations Incorporated, Inc., 2:24-cv-02630 (CBM/KLS), which alleges a class period of Aug. 11, 2023 through March 25, 2024, inclusive.
The new class action, however, alleges a broader class period, as the new case is brought on behalf of all investors who purchased or otherwise acquired LUNA securities during the Extended Class Period – between May 16, 2022 and Apr. 19, 2024, inclusive.
If you are a shareholder who purchased LUNA shares during the Extended Class Period, you have until May 31, 2024, to ask the Court to appoint you as Lead Plaintiff for the class in the Luna litigation. A copy of the Complaint can be obtained here. Click here to discuss your legal rights with Hagens Berman.
CASE ALLEGATIONS: The new Luna class action lawsuit alleges that defendants throughout the Extended Class Period 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 Defendants failed to disclose to investors: (1) Luna’s financial statements dating back to May 16, 2022 through and including November 14, 2023 contained unearned revenues that should not have been recognized; (2) Luna would need to restate financial statements that it filed during May 16, 2022 through and including November 14, 2023; (3) Luna’s disclosure controls and procedures did not provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (4) Luna’s disclosure controls and procedures were not effective; and (5) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
Investors began to learn the truth on Mar. 12, 2024, when Luna revealed that it would not timely file its annual financial statements for the year ended Dec. 31, 2023 as a result of having reported revenues during Q2 and Q3 2023 “that did not qualify for revenue recognition under [GAAP].” The company also warned that investors should no longer rely on its financial statements for the quarters ended June 30 and September 30, 2023 and that its internal controls over financial reporting was not sufficient. This news drove the price of Luna shares crashing over 35% lower on Mar. 13, 2024.
Then, on March 25, 2024, after the market closed, the Company filed with the SEC a current report on Form 8-K (the “March 25 Form 8-K”) which announced that Defendant Graeff had retired, effective immediately. On this news, the price of Luna Innovations stock fell by $0.41 per share, or 11.54%, to close at $3.14 on March 26, 2024.
On April 19, 2024, Luna announced that, in addition to non-reliance on its 2Q23 and 3Q23 Reports, investors should no longer rely on its previously filed financial statements contained in its 1Q22, 2Q22, 3Q22, FY22, and 1Q23 Reports because the Company improperly recognized revenues in each of these Reports too. This news drove the price of Luna shares down $0.36 (12.8%) during the two trading days ended April 22, 2024.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Luna securities during the Class Period to seek appointment as lead plaintiff of the Luna class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Luna class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Luna class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Luna class action lawsuit. Lead plaintiff motions for the pending Luna class action litigation must be filed with the Court no later than May 31, 2024.
If you’d like more information and answers to frequently asked questions about the Luna case and our investigation, read more »
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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