#USA #Class Action #Securities Fraud #Bensalem #Flux Power

Investors Take Action Against Flux Power Holdings

In recent developments, the Law Offices of Howard G. Smith have stepped forward to advocate for investors who have experienced notable financial losses related to Flux Power Holdings, Inc. Those impacted are encouraged to lead a class action lawsuit against the company for alleged securities fraud. This opportunity is available for investors who held shares during the class period that spans from November 11, 2022, to September 30, 2024.

Allegations of Misleading Financial Statements

The primary allegations against Flux Power center on failure to adequately disclose vital financial information. According to the complaint, several critical issues have emerged regarding the company’s financial reporting during the aforementioned class period:
1. Overstated Inventory and Assets: It is claimed that Flux Power's financial statements included inflated figures for inventory and gross profits, misleading investors about the company's actual financial health.
2. Understated Costs: Furthermore, the complaint alleges that the company understated its cost of sales and net losses, presenting a rosier picture of profitability than was warranted.
3. Need for Restatement: Due to these misrepresentations, it has been revealed that Flux Power will have to restate its prior financial statements, casting doubt on the reliability of its financial disclosures.
4. Inadequate Internal Controls: The allegations also point towards weaknesses in internal controls, contradicting previous claims made by the company that its controls were sufficient.
5. Misleading Statements: Finally, the suit highlights that the positive assertions made by Flux Power's leadership regarding the company's operations and future prospects lacked a credible foundation, further misleading investors.

How to Participate in the Class Action

Investors who believe they qualify as members of the aggrieved class do not need to take immediate action to join the lawsuit. They may choose to either obtain personal legal counsel or can opt to remain uninvolved while retaining their rights. For those who wish to explore this legal avenue, contacting the Law Offices of Howard G. Smith is encouraged. Investors can reach out via telephone at (215) 638-4847 or through email at email protected] Inquiries can also be made via the firm’s official website, [howardsmithlaw.com.

Essential Deadlines

It is crucial for interested investors to note key deadlines associated with this class action: the lead plaintiff deadline is set for December 31, 2024. Acting promptly can help safeguard investor rights and maintain the opportunity to recover losses.

Final Thoughts

The current situation surrounding Flux Power Holdings illustrates the complexities and risks associated with investing in publicly-traded companies. As allegations of securities fraud emerge, affected investors are advised to assess their positions carefully and consider potential legal options. The actions taken in the following weeks will likely define the dynamics of this case and may impact the future operations of Flux Power Holdings significantly.