Pomerantz Law Firm Notifies Shareholders of Flux Power Holdings of Class Action Filing and Important Dates

Legal Action Imminent: Flux Power Holdings Facing Class Action

Flux Power Holdings, Inc. has found itself at the center of a legal storm as Pomerantz LLP announces the filing of a class action lawsuit against the company. The suit targets those shareholders who endured financial losses while invested in Flux, particularly focusing on potential securities fraud and misconduct by the company's executives and board members.

As per the official announcement made by Pomerantz, shareholders are encouraged to reach out if they purchased shares of Flux during the designated Class Period. This legal move also highlights significant upcoming deadlines, with December 31, 2024, marking the last day for investors to request the court appoint them as Lead Plaintiff in the class action case.

Underlying Issues with Financial Reporting

The turmoil surrounding Flux is rooted in serious discrepancies in the company's previous financial statements. On September 5, 2024, Flux Power Holdings disclosed that its Board of Directors determined that earlier financial documents relating to the fiscal year ended June 30, 2023, and several subsequent quarters, cannot be relied upon due to errors in inventory accounting.

The issue originated from improper valuation of inventory and a failure to account for around $1.2 million in excess and obsolete inventory resulting from supplier changes, as well as approximately $0.5 million worth of improperly categorized inventory. Such inaccuracies ultimately led to inflated figures in assets and profit statements, misleading shareholders and distorting the financial health of the company.

As a direct consequence of these revelations, Flux's stock witnessed a notable decline, dropping 5.36% on September 6, closing at $3.00 per share. Following subsequent notifications regarding late filings, shares further plummeted, underscoring the fallout from the company’s financial misreporting.

Legal Representation and Further Steps

Pomerantz LLP is renowned for its dedication to protecting the rights of investors, specifically those who fall victim to securities fraud. The firm is well-respected in the realm of corporate litigation, having successfully recovered billions for its clients since its establishment over 85 years ago.

Shareholders looking to extent their participation in the class action are urged to contact attorney Danielle Peyton directly through provided channels. To enhance the chances of being included as a Lead Plaintiff, affected investors are encouraged to provide essential details such as address, phone number, and the quantity of shares held to facilitate communication and organization.

For those wishing to explore their options and view the official complaint, resources are available at Pomerantz’s website.

Conclusion

As the legal proceedings unfold, the implications for Flux Power Holdings and its shareholders remain significant. Investors are reminded of the importance of understanding their rights and the complexities involved in navigating class action lawsuits. The attention on Flux Power's practices not only serves as a reminder of the potential pitfalls in the corporate world but also exemplifies the role law firms play in championing shareholder rights and accountability within corporate governance.