PHILADELPHIA, May 30, 2024 (GLOBE NEWSWIRE) -- Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Luna Innovations Incorporated (“Luna Innovations” or the “Company”) (NASDAQ: LUNA) on behalf of purchasers of Luna Innovations securities between May 16, 2022 and April 19, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired Luna Innovations securities during the Class Period may, no later than May 31, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at jmaro@bm.net or (267) 637-3176, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or CLICK HERE.
Luna Innovations is a technology company that is focused on fiber optics. The Company creates products targeting the aerospace, automotive, and communications industries, among others.
The complaint alleges that, throughout the Class Period, Luna Innovations made materially false and misleading statements regarding the effectiveness of its internal control over financial reporting.
The truth began to emerge on March 12, 2024, after the market closed, when Luna Innovations announced on a Form 8-K that it would need to restate its financial statements for the second and third quarters of 2023. In its 8-K, Luna Innovations disclosed that, “the Company’s previously issued unaudited interim condensed consolidated financial statements for the quarters ended June 30, 2023, and September 30, 2023 . . . should no longer be relied upon and should be restated.” The Form 8-K further stated that, “the Company has identified material weaknesses in its internal control over financial reporting that existed as of June 30, 2023, and September 30, 2023, and has re-evaluated the effectiveness of the Company’s disclosure controls and procedures as of those dates.”
Following this news, the price of Luna Innovations stock fell $2.24 per share, or 35.78%, to close at $4.02 on March 13, 2024.
Then, on March 25, 2024, after the market closed, the Company announced that CEO Scott A. Graeff had retired, effective immediately. The complaint alleges that Graeff retired as a result of the misconduct detailed in the complaint.
Following 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.
Finally, on April 19, 2024, Luna announced that, in addition to non-reliance on its 2Q 2023 and 3Q 2023 reports, investors should no longer rely on its previously filed financial statements contained in its 1Q 2022, 2Q 2022, 3Q 2022, full-year 2022, and 1Q 2023 reports because the Company improperly recognized revenues in each of these reports, as well. This news drove the price of Luna shares down $0.36 (12.8%) during the two trading days ended April 22, 2024.
According to the complaint and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Luna Innovations financial statements from August 10, 2023 to the present included false figures as a result of improper revenue recognition; (2) as a result, Luna Innovations would need to restate its previously filed financial statements from August 10, 2023 to November 14, 2023; and (3) Luna Innovations lacked adequate internal controls.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
jmaro@bm.net
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
