#United States #New York #Class Action #Faruqi & Faruqi #Quantum Corporation

Investor Alert: Quantum Corporation Class Action Reminder

Faruqi & Faruqi, LLP, a prominent national securities law firm, is reaching out to investors of Quantum Corporation to highlight an important upcoming deadline. The firm is investigating claims related to a class action lawsuit involving the company, with a lead plaintiff application deadline set for November 3, 2025. This lawsuit has emerged due to allegations of financial mismanagement that may have significantly impacted investors.

Securities Litigation Partner James (Josh) Wilson is encouraging individuals who believe they have incurred losses exceeding $75,000 in Quantum Corporation during the period from November 15, 2024, to August 18, 2025, to engage directly with him for legal advice regarding their rights and options. Investors with concerns can reach him by phone at 877-247-4292 or 212-983-9330, extension 1310.

Background of the Lawsuit

The core issues raised in the lawsuit center around allegations that Quantum Corporation made misleading statements or failed to disclose vital information about its financial practices. Major points of concern include:
1. Improper revenue recognition for the fiscal year ending March 31, 2025.
2. The necessity to restate financial statements for the third quarter of 2024 due to inaccuracies.
3. Misleading representations about the company's business and operational status, which lacked a reasonable foundation.

The severity of these allegations became clear when Quantum announced on June 30, 2025, it could not timely submit its annual financial report. This was attributed to a review of its accounting concerning certain revenue contracts, leading to a 10.03% drop in stock value. Following this, on August 8, 2025, Quantum revealed its third-quarter financial statements were unreliable due to significant internal control deficiencies. Consequently, their stock price dropped further. Lastly, the resignation of their CEO announced on August 18, 2025, led to an additional decrease in stock value.

The Role of Lead Plaintiff

In class action lawsuits, the lead plaintiff plays a crucial role, representing the interests of the class throughout the proceedings. The court selects this party based on their financial stake and typicality of claims. Any investor impacted by the situation can apply to represent the class by choosing legal counsel or may decide to remain a passive member. It’s essential to understand that participation as a lead plaintiff does not affect one’s ability to receive compensation as part of any settlement reached.

Faruqi & Faruqi also urges anyone with relevant information about the conduct of Quantum Corporation, including whistleblowers and former employees, to come forward. This call for information is vital for bringing transparency and accountability to the company’s actions.

Conclusion

With the November deadline approaching, affected investors should take immediate action if they wish to pursue claims against Quantum Corporation. For more insights, interested individuals can visit Faruqi & Faruqi's class action page or contact James (Josh) Wilson directly to discuss their legal options. Keeping abreast of the developments surrounding this class action lawsuit is crucial for safeguarding one's investment interests.

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