Pomerantz Law Firm Issues Alert Regarding Flux Power Holdings Class Action Lawsuit

Class Action Against Flux Power Holdings

The Pomerantz Law Firm has announced the initiation of a class action lawsuit against Flux Power Holdings, Inc., a company that operates within the energy sector and is traded on NASDAQ under the ticker FLUX. This lawsuit arises from allegations that the company’s executives engaged in misleading practices related to financial reporting, thereby affecting shareholders severely

Background of the Case

The flagging concerns relate to significant errors found within the company's previously issued financial statements, particularly those for the fiscal year ending June 30, 2023, and the quarterly statements for the subsequent periods. According to disclosures made by Flux Power Holdings in a filing with the U.S. Securities and Exchange Commission (SEC), it has come to light that the company's financial reports may have overvalued inventory assets and undervalued costs, ultimately resulting in inaccuracies concerning gross profit and net losses reported in these statements.

The identified discrepancies include approximately $1.2 million worth of excess inventory that was not properly accounted for, alongside other specific accounting missteps that inflated assets by nearly half a million dollars. As a direct consequence, Flux Power Holdings' stock experienced a notable decrease, falling by 5.36% to $3.00 per share following the revelation of these inaccuracies.

Shareholder Rights and Upcoming Deadlines

For those investors who suffered losses from purchasing Flux securities during the designated Class Period, the law firm invites you to take action. Interested parties are urged to reach out to Danielle Peyton at Pomerantz LLP to discuss potential participation in the lawsuit. Investors can secure their spot as Lead Plaintiffs, provided they indicate their intention to join the class action by December 31, 2024. Any investor impacted by the alleged mismanagement is encouraged to share their contact details and the number of shares they held to ensure their representation.

As it stands, the law firm highlights that this lawsuit is pivotal for holding the company's board accountable for potential securities fraud and other unlawful actions. The implications of this case extend beyond financial compensation, as it represents a critical opportunity for shareholders to reclaim trust and demand transparency from the company.

The Firm Behind the Lawsuit

Pomerantz LLP is a well-regarded law firm based in New York with a long-standing reputation in handling corporate securities litigation and class action lawsuits. It has been at the forefront of advocating for victims of financial fraud for over 85 years. The firm, founded by the late Abraham L. Pomerantz, remains committed to fighting for the rights of aggrieved shareholders and has successfully recovered millions for class members in similar cases.

Investors who wish to explore more details about this class action lawsuit, including how to participate, should visit the Pomerantz Law Firm's official website or contact them directly via the provided details. As markets fluctuate and companies face legal scrutiny, staying informed and vigilant about investments remains crucial for shareholders, particularly those involved with Flux Power Holdings.

This case serves as a reminder of the importance of corporate accountability and the role of shareholders in demanding integrity from their investments. The upcoming days will be critical for Flux Power Holdings as the legal proceedings unfold, and investor engagement could lead to significant developments in the resolution of this situation.

For further information about the ongoing disclosures and procedures surrounding this lawsuit, keep an eye on announcements from Pomerantz LLP, and be prepared to take action if you are a concerned shareholder.