#USA #New York #securities lawsuit #Flux Power #Faruqi & Faruqi

Investigation Announced for Flux Power Holdings, Inc. Investors

Faruqi & Faruqi, LLP, a prominent securities law firm, is on the lookout for potential claims regarding Flux Power Holdings, Inc. Investors who have experienced losses exceeding $75,000 between November 11, 2022, and September 30, 2024, are encouraged to reach out to the firm directly to explore their legal options.

Key Details of the Investigation

Faruqi & Faruqi has initiated its investigation as serious allegations have surfaced against Flux Power. Reports indicate that the company has possibly failed to meet federal securities law standards by making misleading statements and omissions regarding its financial health. These claims particularly highlight issues with overstated financial metrics such as inventory and gross profit, along with understated losses and costs. This investigation is particularly pressing as the December 31, 2024, deadline approaches for those interested in taking on the role of lead plaintiff in a federal class action lawsuit.

The timing of this investigation aligns with significant announcements made by Flux Power, including a report to the SEC indicating that certain previous financial statements are no longer reliable due to errors in accounting practices. On September 5, 2024, the company disclosed that it must restate its finances concerning improper inventory accounting, leading to a notable drop in its stock price, from $3.17 to $2.88 within just a few days following this news.

What’s Next for Investors?

Investors are reminded that participation in the class action does not require taking on the lead plaintiff role, but doing so grants individuals greater control over the case. The lead plaintiff is typically someone who is representative of the class, holding significant financial interest in the claims being pursued. All members of the prospective class are encouraged to either step forward or remain passive participants in the proceedings.

Faruqi & Faruqi is keen on hearing from investors, potential whistleblowers, or former employees who may have relevant information regarding Flux Power’s internal conduct. Engaging with the law firm could provide these stakeholders opportunities to recover losses incurred through misrepresentation and lack of transparency in the company’s financial reporting.

Conclusion

As the deadline nears, Faruqi & Faruqi, LLP emphasizes the urgency for affected investors to take action. With historical precedence of recovering hundreds of millions for clients since its inception in 1995, the firm stands ready to assist those who have suffered losses in Flux Power’s turbulent financial journey.

For more details on how to get involved, investors can contact the firm directly or visit their dedicated webpage for the Flux Power class action. Continued updates and general information will be shared through various media channels, as the firm aims to keep its clients and public informed about the evolving situation surrounding Flux Power Holdings, Inc.