| COMPANY |
Flux Power Holdings, Inc. |
| COURT |
United States District Court for the District of Nevada |
| CASE NUMBER |
24-cv-02051 |
| JUDGE |
The Hon. Cristina Dionne Silva |
| CLASS PERIOD |
November 11, 2022 through September 30, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS DECEMBER 31, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
On September 5, 2024, Flux Power disclosed that previously issued audited consolidated financial statements the fiscal year ended June 30, 2023 and the unaudited consolidated financial statements for the quarters ended September 30, 2023, December 31, 2023, and March 31, 2024 should no longer be relied upon. Flux Power stated that these statements should no longer be relied upon due to errors relating to the improper accounting for inventory resulting in an overstatement of inventory, current assets, total assets and accumulated deficit, an understatement of cost of sales and net loss, and overstatement of gross profit. Flux Power further stated that a material weakness exists in its disclosure controls and procedures and the company’s internal control over financial reporting. On this news, Flux Power’s stock price fell $0.17, or 5.4%, to close at $3.00 on September 6, 2024.
Then, on September 30, 2024, Flux Power disclosed that it would be unable to timely file its Annual Report for the fiscal year ended June 30, 2024. On this news, Flux Power’s stock price fell $0.18, or 5.9%, to close at $2.86 per share on October 1, 2024.
The complaint alleges that, during the Class Period, 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, Defendants failed to disclose to investors that: (1) Flux Power’s financial statements from November 10, 2022 to the present included, among other things, overstated inventory, gross profit current assets, and total assets; (2) Flux Power understated cost of sales, net loss; (3) as a result, Flux Power would need to restate its previously filed financial statements from November 10, 2022 to the present; (4) Flux Power understated internal control weaknesses or stated that it had adequate internal controls when in fact it did not; and (5) as a result, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or 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.