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

Faruqi & Faruqi Investigates Quantum Corporation Claims

Faruqi & Faruqi, LLP, one of the prominent national securities law firms, is taking an active role in investigating claims on behalf of investors of Quantum Corporation. Investors who suffered financial losses due to the company’s deceptive actions are being urged to reach out and explore their legal options. The firm’s Securities Litigation Partner, James (Josh) Wilson, has been particularly vocal, emphasizing the importance of contacting him directly in light of the upcoming deadline for those who might wish to pursue a lead plaintiff role in a federal securities class action lawsuit.

Understanding the Legal Context

Between November 15, 2024, and August 18, 2025, individuals who purchased or acquired securities in Quantum Corporation may have valid claims due to misleading financial statements that ultimately led to significant stock price drops. The firm is particularly focused on the implications of Quantum’s erroneous revenue recognition practices, which misrepresented their financial standing and operations.

Key Issues at Play

As outlined in the investigation, there are serious allegations suggesting that Quantum failed to disclose critical issues in their financial reporting. Specifically, the lawsuit points to significant shortcomings in revenue recognition during the fiscal year that concluded in March 2025. The ensuing results of these discrepancies prompted the need for a restatement of previously filed financial statements. An indication of trouble surfaced when Quantum publicly admitted that it could not timely file its annual financial report for 2025.

On June 30, 2025, this admission culminated in a drastic decline in the company's stock price, which dropped to $8.97, reflecting a 10.03% decrease after market reactions to the unsettled finances. Further revelations followed in August 2025 regarding internal control deficiencies that warranted attention, leading to a restatement of revenue by approximately $3.9 million. These developments contributed to another decline, reducing the stock price significantly in the aftermath.

To compound the situation, Quantum’s CEO announced their resignation just five months into the role, adversely affecting investor confidence, damaging the company’s reputation further and leading to another significant stock drop.

The Role of Investors

Investors who believe they have a stake in this matter are encouraged to assess their positions, as the law firm prepares to represent those affected through this class action lawsuit. The court will appoint the lead plaintiff based on financial interest in the relief sought, aligning with the average investor’s rights.

Moreover, Faruqi & Faruqi, LLP emphasizes the importance of involving investors who possess knowledge about Quantum’s activities to aid in the investigation, including whistleblowers and former employees.

For any individual looking to understand their rights or seeking more information regarding the current standing of Quantum Corporation, assistance is readily accessible by contacting Josh Wilson at the firm directly. They advise that potential plaintiffs reach out either by phone or through the firm’s official website, where further guidance is provided.

Conclusion

As the November 3, 2025 deadline looms closer, affected investors should be proactive in seeking legal counsel to better navigate the complexities of these allegations against Quantum Corporation. This investigation by Faruqi & Faruqi, LLP represents a critical opportunity for investors to assert their rights and potentially recover losses incurred. For more information, visit www.faruqilaw.com/QMCO or call directly at 877-247-4292 or 212-983-9330 (Ext. 1310).