NEW YORK, March 14, 2018 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Quantum Corporation ("Quantum" or the "Company") (NYSE: QTM) and certain of its officers. The class action, filed in United States District Court, for the Northern District of California, is on behalf of a class consisting of investors who purchased or otherwise acquired Quantum securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Quantum securities between July 27, 2016, and February 7, 2018, both dates inclusive, you have until April 16, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Quantum sells scale-out tiered storage, archive and data protection solutions for capturing, sharing, managing and preserving digital assets in physical and virtual environments. Among other products, Quantum provides storage file systems, nearline storage systems, backup, and deduplication appliances, tape libraries, and cloud services.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Quantum had inappropriately accounted for revenue relating to certain transactions commencing April 1, 2016; (ii) the Company lacked adequate internal controls over financial reporting; and (iii) that as a result of the foregoing, Quantum's publicly disseminated financial statements were materially false and misleading.
On February 8, 2018, before trading had opened, Quantum disclosed that it had received a subpoena from the Securities and Exchange Commission on January 11, 2018 "regarding its accounting practices and internal controls related to revenue recognition for transactions commencing April 1, 2016," prompting an internal investigation by Quantum's audit committee, which remains ongoing. As a result, the Company further announced that it would postpone the release of its fiscal third quarter 2018 results and earnings call.
On this news, Quantum's share price plunged 29.9% to close at $3.90 on February 8, 2018, causing millions of dollars in losses to investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 Ext. 9980
SOURCE Pomerantz LLP