SAN FRANCISCO, Dec. 2, 2019 /PRNewswire/ -- Hagens Berman urges Brooks Automation, Inc. (NASDAQ: BRKS) investors who have suffered losses on or before December 2, 2019 to submit their losses now to learn if they qualify to recover compensable damages. The firm has opened an investigation into Brooks and investors may have valuable claims under the federal securities laws.
Brooks Automation, Inc. (BRKS) Investigation:
The investigation centers on the accuracy of Brooks' reported financial statements for its fiscal year ended September 30, 2019, including the propriety of the Company's revenue recognition practices and internal controls over financial reporting.
In past filings with the SEC, Brooks has represented that it has complied with new accounting guidance for reporting revenue recognition, that its financial statements were prepared in accordance with Generally Accepted Accounting Principles, and has affirmed the effectiveness of its internal controls over financial reporting.
But on December 2, 2019, Brooks disclosed that it could not timely file its fiscal 2019 annual report due to an ongoing review of its revenue recognition practices. The Company disclosed that the review focuses on the timing of revenue recognition with respect to product shipped from one of the Company's contract manufacturers within its Semiconductor Solutions Group. The Company stated that its Audit Committee is also reviewing the timing of revenue recognition for similar transactions. Separately, the Company revealed that it would report a material weakness in the financial reporting of its Brooks Life Sciences segment related to price and quantity of certain billings.
On this news, Brooks' share price fell sharply during intraday trading on December 2, 2019, thereby injuring investors.
"We're focused on recovering investors' losses and whether Brooks engaged in improper revenue recognition and billing practices to artificially inflate its stock," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Brooks and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Brooks should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email mailto:BRKS@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 510-725-3000
SOURCE Hagens Berman Sobol Shapiro LLP