#United States #New York #Class Action #Flux Power Holdings #Pomerantz LLP

Pomerantz Law Firm Alerts Investors on Flux Power Holdings Class Action

Pomerantz LLP, a well-known firm specialized in class action litigation, has recently declared that a class action lawsuit has been initiated against Flux Power Holdings, Inc. (NASDAQ: FLUX). This comes as a significant warning for shareholders who may have suffered losses related to their investments in the company, as the lawsuit raises serious allegations surrounding potential securities fraud and other improper business conduct by the company’s executives and directors.

Background of the Case

The class action lawsuit revolves around whether Flux Power has engaged in practices that could be deemed illegal or misleading. Affected shareholders are being encouraged to take action, as there is a critical deadline approaching. Those who purchased or acquired Flux securities during the designated period are advised to contact the law firm for assistance in potentially becoming recognized as a Lead Plaintiff in the case. Time is of the essence, as shareholders have until December 31, 2024 to step forward.

Key Information for Shareholders

To facilitate the process, shareholders are prompted to reach out to Danielle Peyton from Pomerantz LLP via email or phone for further information and guidance. It's important for interested parties to provide their contact details and the number of shares held to streamline the communication and legal representation process.

The issues leading to the class action stem from significant discrepancies in Flux's financial statements. On September 5, 2024, the company disclosed to the U.S. Securities and Exchange Commission (SEC) that previously reported financials for the year ending June 30, 2023, as well as interim reports for the fiscal quarters, were misleading due to improper accounting, specifically concerning inventory management. The misstatements were severe enough to warrant restatement of financials, revealing that approximately $1.2 million worth of excess inventory was not adequately addressed, resulting in inflated asset values.

Stock Market Reaction

Following the announcement of these discrepancies, Flux's stock experienced a sharp decline, plummeting by 5.36% to close at $3.00 per share on September 6, 2024. This drop signifies increasing investor skepticism regarding the company's financial integrity. Moreover, the situation deteriorated further on September 30, 2024, when Flux notified the SEC of its inability to file its annual report within the expected timeframe, contributing to another drop of 5.9% in share price by the following trading day.

About Pomerantz LLP

Pomerantz LLP, with a history spanning over 85 years, is regarded as a leading firm in corporate and securities class action litigation. The firm has a notable track record advocating for investors deceived by corporate misconduct and securities fraud. They have successfully recovered billions of dollars for class members in similar disputes. For more details, shareholders can visit their official website at www.pomlaw.com.

In summary, the ongoing situation with Flux Power Holdings, Inc. underscores the volatility and risks associated with investments in public companies. Those affected by the alleged misrepresentations should consider their options carefully and act promptly to protect their investments amid this unfolding legal battle.