Hagens Berman Launches Investigation into ALT5 Sigma Over Possible Disclosure Violations

Investigation into ALT5 Sigma Corporation by Hagens Berman

On December 15, 2025, the prominent shareholder rights law firm Hagens Berman announced that it is undertaking an investigation into ALT5 Sigma Corporation (NASDAQ: ALTS) amid growing concerns about the company's governance practices and potential regulatory breaches. This development comes on the heels of a troubling stock price decline of nearly 80%, raising alarm among investors.

The firm's investigation is primarily focused on whether ALT5 misled its investors regarding the integrity of its financial reporting and internal controls. Central to this scrutiny is the company's August 2025 registered offering of $1.5 billion, during which it failed to submit its Q3 report on time—a delay that prompted a Non-Compliance Notice from Nasdaq on December 2, 2025. Compounding these issues, ALT5 Sigma has faced severe challenges, including a subsidiary's conviction linked to money laundering and a significant shake-up in its management team.

Concerns Over Financial Reporting

One of the most serious concerns surrounds the potential discrepancies in ALT5 Sigma’s reporting practices, specifically regarding the resignation of its auditor, William Hudgens. Allegations have emerged that Hudgens had communicated his intent to resign before the end of the second quarter of 2025 but the company officially disclosed the resignation only in November. This raises questions about the adherence of ALT5 Sigma to SEC disclosure requirements, particularly under Form 8-K, which mandates prompt reporting of such changes.

CEO Suspension and Governance Issues

The investigation’s scope also encompasses the unexpected suspension of CEO Peter Tassiopoulos. Initially reported to have been suspended on October 16, news leaks suggest that the CEO might have been placed on leave as early as September 4, causing a delay in informing investors about critical developments. This potential concealment of executive changes has intensified scrutiny over the company's governance structure—the suspension followed multiple terminations within the top management level, including the CFO and the Audit Committee Chair.

Systemic Governance Failures

Hagens Berman has expressed particular concern about the broader implications of these delays and disclosures. Reed Kathrein, the partner leading the investigation, stated, “The cumulative failures to timely disclose critical information point to a systemic breakdown in corporate governance.” These violations not only impact investor confidence but also raise red flags concerning the company’s overall practices when it comes to compliance with regulatory standards.

Call to Action for Affected Investors

In light of these developments, Hagens Berman is actively urging impacted investors who have suffered substantial financial losses as a result of these potential reporting failures to reach out for legal assistance. The firm has a robust history of fighting for shareholder rights and is well-equipped to represent investors navigating the fallout from such governance crises. Investors can contact partner Reed Kathrein directly for a confidential consultation regarding their ALT5 Sigma investments and potential legal actions.

Hagens Berman is focusing on ensuring that corporate accountability is upheld and that investors receive the protection and answers they deserve. Interested shareholders are encouraged to gather their documentation and reach out quickly, as the investigation is ongoing. More detailed information and resources are accessible on Hagens Berman's website, which is dedicated to this particular case. The firm is also open to whistleblower reports, providing additional avenues for individuals who may possess pertinent insider information regarding ALT5 Sigma's operations.

Conclusion

The scrutiny surrounding ALT5 Sigma underscores the vital importance of transparency and accountability in corporate governance. As Hagens Berman continues to investigate these serious allegations, the implications of this case may resonate throughout the investment community, serving as a stark reminder of the potential consequences of governance failures and the rights of shareholders to seek justice. Investors are encouraged to stay informed and take prompt action to protect their interests amidst these developments.