#United States #New York #Faruqi & Faruqi #Josh Wilson #Quantum Corporation

Investigation into Quantum Corporation's Financial Practices

Overview

In a recent development that has drawn attention from investors and legal experts alike, Faruqi & Faruqi, LLP, a prominent national securities law firm, is looking into potential claims on behalf of those affected by the recent financial missteps of Quantum Corporation (NASDAQ: QMCO). This investigation targets losses incurred by investors during a specific window, from November 15, 2024, to August 18, 2025, prompting an urgent call for affected parties to take action.

The Allegations Against Quantum Corporation

The crux of the investigation centers around allegations that Quantum Corporation made false or misleading statements regarding its financial status. Key claims against the company include:
1. Improper revenue recognition for the fiscal year ending March 31, 2025.
2. The necessity to restate financial statements for the third quarter ended December 31, 2024.
3. Misleading statements about its business and operational outlook that lacked a factual basis.

These allegations have significant implications for investors who may have suffered financial damage due to these purported misstatements. As the true nature of Quantum's financial practices began to surface, investor confidence plummeted, leading to a series of stock price declines.

Financial Impact on Investors

On June 30, 2025, Quantum Corporation announced that it could not file its annual financial report timely due to ongoing reviews concerning specific revenue contracts. This disclosure resulted in a drastic stock price drop of $1.00, or approximately 10.03%, closing at $8.97 per share on the same day. With the market reacting negatively to such news, investors felt the immediate impact of the company's transparency issues.

Moreover, on August 8, 2025, Quantum stated that its third quarter 2024 financial statements were untrustworthy due to deficiencies in internal controls and disclosures that represented critical weaknesses. This led to a further reduction in projected revenue by about $3.9 million, prompting another stock drop to $7.66 per share by August 11, 2025. The situation worsened on August 18, 2025, when the news broke regarding the resignation of Quantum's CEO after a mere five months in office, resulting in another critical dip in stock price, closing at $6.83 per share the following day.

Legal Recourse for Affected Investors

Faruqi & Faruqi partner James (Josh) Wilson has publicly urged any individuals who believe they have suffered losses due to their investment in Quantum Corporation to reach out for legal support. The firm is preparing to file a federal securities class action lawsuit against Quantum, with a deadline for potential lead plaintiffs set for November 3, 2025. The lead plaintiff will represent the class of affected investors, providing a critical voice in the pursuit of accountability and damages.

Investors are encouraged to consider their participation as it may influence the direction of the litigation. They can contact the law firm directly via phone or through their website for additional guidance on their potential claims and legal options.

Conclusion

As the situation develops, Quantum Corporation investors are advised to stay informed and proactive regarding their legal rights. With Faruqi & Faruqi leading the call to action, there is a pathway for investors to seek justice for their financial losses. Engaging with a dedicated legal team can provide the necessary support to navigate this challenging landscape effectively. For further updates and detailed information, interested parties can follow the firm on their social media platforms or visit their website.

If you have any helpful information regarding Quantum Corporation’s practices, reaching out to the firm, including prior employees or whistleblowers, may further assist in the ongoing investigation.