Investors Urged to Act: Faruqi & Faruqi Investigates Quantum Corporation Claims

Overview of the Investigation

Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently looking into potential claims regarding Quantum Corporation, particularly for investors who acquired securities between November 15, 2024, and August 18, 2025. Investors who believe they have faced losses in this time frame are encouraged to reach out and discuss their legal options with Faruqi & Faruqi's partner James (Josh) Wilson. His contact number is 877-247-4292 or 212-983-9330 (Ext. 1310).

Background of Quantum Corporation

Quantum Corporation, listed on NASDAQ under the ticker QMCO, is known for its data storage solutions and has a long-standing presence in the tech industry. However, it has recently faced scrutiny and controversy over its financial disclosures. On October 15, 2025, it was reported that the firm is under investigation due to questionable accounting practices that could potentially mislead investors regarding the Company's financial state.

Key Allegations

The lawsuit alleges that Quantum Corporation made several misleading statements regarding its revenue recognition for the fiscal year ending March 31, 2025. Specifically, it has been claimed that:
1. Quantum improperly recognized revenue, not adhering to standard financial protocols.
2. The Company will be required to restate its financial statements for the fiscal third quarter.
3. Previous statements concerning the Company’s operations and potential were misleading to investors, lacking any substantial truth.

These allegations indicate significant discrepancies in how Quantum Corporation has managed its finances. When this information became public, many investors reportedly suffered losses due to the deflated value of the Company's stock.

Stock Price Reactions

On June 30, 2025, Quantum disclosed it would not meet its annual financial report deadline due to an ongoing review of its revenue contracts. This announcement resulted in a notable decline in its stock, which plummeted by $1.00, equating to a 10.03% drop, closing at $8.97 per share.

Moreover, on August 8, 2025, it was revealed that prior financial statements could not be relied upon due to severe deficiencies in internal controls over financial reporting. The announcement of a $3.9 million revenue decrease further contributed to investor concern, leading to another reduction in stock value of $0.14, or 1.79%, to close at $7.66 per share.

The downward spiral continued on August 18, 2025, when Quantum revealed the unexpected resignation of its CEO just five months after taking office, which caused the stock to drop by $0.61 to a closing price of $6.83 per share.

Next Steps for Investors

These developments have made it crucial for investors impacted by Quantum Corporation's actions to act swiftly. With a deadline of November 3, 2025, set for investors wanting to participate as lead plaintiffs in a federal securities class action lawsuit against the Company, Faruqi & Faruqi urges affected individuals to come forward.

It is essential for members of the investor community to understand that serving as a lead plaintiff gives them a voice and a role in directing the litigation on behalf of the class but does not affect their ability to recover any losses.

Call to Action

If you possess any information regarding Quantum Corporation’s actions or if you are a shareholder who suffered losses due to the aforementioned misrepresentations, please do not hesitate to contact Faruqi & Faruqi. They are actively seeking whistleblowers, former employees, and anyone who may have relevant information.

For more details about the Quantum Corporation class action, visit Faruqi Law or call Josh Wilson directly. Follow Faruqi & Faruqi for updates on social media platforms like LinkedIn, X, and Facebook. All inquiries will be handled confidentially, and taking part in this process may present a chance for recovery for those affected.