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Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently examining potential legal claims against Flux Power Holdings, Inc. (NASDAQ: FLUX). Investors who have incurred losses exceeding $50,000 due to Flux Power’s activities, particularly those facing losses over $75,000 between November 11, 2022, and September 30, 2024, are being encouraged to reach out for legal counsel. The firm has established a direct contact line for affected investors to discuss their rights and potential claims.
The firm emphasizes the importance of a rapidly approaching deadline on December 31, 2024, for investors to seek the position of lead plaintiff in a federal securities class action lawsuit against the company. With a long-standing reputation since its inception in 1995, Faruqi & Faruqi has successfully recovered substantial amounts of capital for investors in similar situations.
The legal complaint against Flux Power alleges that the company and its executives have breached federal securities laws by issuing misleading statements and failing to disclose critical financial discrepancies. Some of the key allegations include:
- Inflated financial statements that showcased overstated inventory, gross profit, and total assets from November 10, 2022, onwards.
- Underreported costs related to sales and net losses.
- The necessity for Flux Power to revise its previously released financial statements due to these inaccuracies.
- Inadequate disclosure about internal control weaknesses despite claims of having robust internal systems in place.
- Consequently, the company’s representations about its business viability and forecasts were fundamentally flawed.
These allegations surfaced further when, on September 5, 2024, Flux Power issued a current report declaring the need to retract financial statements for the fiscal year ended June 30, 2023, and for subsequent quarters. This announcement cited improper inventory accounting as the core issue, prompting a necessary restatement of prior financials.
This disclosure led to a significant decline in Flux Power’s stock price, which dropped by over 5% following the announcement, indicating investor reaction to the revealed discrepancies. The stock continued to show downward pressure in subsequent trading sessions, reflecting mounting concerns from the investor community.
In class action lawsuits, a court-appointed lead plaintiff is essential, as this individual represents the interests of all class members throughout the litigation process. Any investor affected may petition the court to take on this role or choose to remain an anonymous class member. Importantly, all class members retain the right to pursue any possible recovery irrespective of their involvement in leading the case.
Faruqi & Faruqi encourages anyone who may possess pertinent information related to Flux Power’s practices—such as whistleblowers, former employees, or shareholders—to reach out to the firm for further discussion. The firm is committed to handling all communications confidentially.
For ongoing updates regarding this case and other communications from Faruqi & Faruqi, interested individuals are invited to follow the firm across its various social media platforms.
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www.investing.com