Pomerantz Law Firm Launches Class Action Against Quantum Corporation Over Securities Fraud Allegations

In a recent development, the Pomerantz Law Firm has officially announced the initiation of a class action lawsuit against Quantum Corporation (NASDAQ: QMCO). This legal action has been prompted by allegations concerning the company's engagement in potential securities fraud and other dubious business practices. The law firm is urging investors who have suffered losses in their investment to contact them as they may be eligible to participate in the suit.

The firm advises investors to reach out to Danielle Peyton at [email protected] or call 646-581-9980 (toll-free at 888.4-POMLAW). For those who prefer email communication, it's suggested to provide personal contact information, including mailing address, phone number, and total shares purchased. Importantly, the deadline for investors to request appointment as Lead Plaintiff is fast approaching—set for November 3, 2025.

The class action will assess whether Quantum and its top executives have breached securities laws through fraudulent practices. Stakeholders who acquired Quantum’s securities within a specified period are encouraged to consult the firm for further details and access to the complaint, which is available on their official website.

The misconduct allegations surfaced following Quantum’s announcement on June 30, 2025, where they indicated a delay in filing their Annual Report. This delay stemmed from an ongoing review of their revenue recognition accounting practices. The reaction from investors was swift; on July 1, 2025, Quantum’s stock price plummeted by $1.00 per share—equating to a significant 10.03% decrease—closing at $8.97 per share.

Further turmoil struck on August 8, 2025, when Quantum disclosed that it was unable to rely on its financials for the third quarter of 2024 due to a projected revenue reduction of approximately $3.9 million. The announcement also highlighted critical deficiencies in the company's internal controls over financial reporting and procedural disclosure, categorizing these issues as material weaknesses dating back to December 31, 2024, and March 31, 2025. This revelation led to another stock downturn, with shares declining by $0.14, or 1.85%, closing at $7.43 on August 11, 2025.

The situation escalated further on August 18, 2025, when Quantum revealed the resignation of Chief Financial Officer Lewis Moorehead, prompted by an internal accounting review related to improper revenue recognition practices. The stock faced another significant blow, dipping by $0.61—an 8.2% drop—to close at $6.83 on August 19, 2025.

Pomerantz LLP is well-regarded in the realm of corporate litigation, particularly in securities and antitrust cases. With a rich history dating back over 85 years, the firm has been at the forefront of advocacy for investors' rights, recovering substantial damages for victims of corporate wrongdoing. Their expertise instills confidence in current and potential clients seeking justice in light of fraudulent activities in the market.

For any involved investors, this news represents a potential opportunity for redress against corporate malfeasance. Contacting Pomerantz LLP promptly is crucial, as the time to act diminishes with each passing day.

In summary, the class action lawsuit against Quantum Corporation focuses on alleged securities fraud that has materially impacted investors. Those affected now have an avenue for potential recovery as they navigate this legal landscape with the assistance of Pomerantz LLP.

For further information or to join the class action, visit the Pomerantz Law Firm's official website at www.pomerantzlaw.com.