| COMPANY |
Symbotic Inc. |
| COURT |
United States District Court for the District of Massachusetts |
| CASE NUMBER |
24-cv-12976 |
| JUDGE |
The Hon. Denise Jefferson Casper |
| CLASS PERIOD |
February 8, 2024, through November 26, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS FEBRUARY 3, 2025.
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:
The Class Period begins on February 8, 2024, when Symbotic filed with the SEC its quarterly report on Form 10-Q for the period ending December 30, 2023. Attached to the quarterly report were certifications pursuant to the Sarbanes-Oxley Act of 2002 signed by Defendants Cohen and Hibbard attesting to the accuracy of financial reporting, the disclosure of any material changes to the company’s internal control over financial reporting, and the disclosure of all fraud.
On November 27, 2024, Symbotic announced that the company “identified errors in its revenue recognition related to cost overruns on certain deployments that will not be billable, which additionally impacted system revenue, income (loss) before income tax, net income (loss) and gross margin recognized in the second, third, and fourth quarters of fiscal year 2024” due to material weaknesses in the company’s internal control over financial reporting. Accordingly, Symbotic’s previously issued financial statements for these periods should no longer be relied upon and would need to be restated. On this news, Symbotic Class A common stock price fell $13.41, or nearly 36%, from a close of $37.41 per share on November 26, 2024, to close at $24.00 per share on November 27, 2024.
The complaint alleges that, throughout 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) Symbotic improperly accelerated its revenue recognition in its second and third quarter 2024 financial statements; (2) the company had a material weakness in its internal controls over financial reporting; and (3) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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.