Legal Investigation Announced Amid Allegations Against Flux Power Holdings Investors Should Act Promptly

Deadline Alert: Faruqi & Faruqi, LLP Investigates Investors' Claims Against Flux Power Holdings

As the calendar year approaches its end, investors of Flux Power Holdings, Inc. are facing an urgent deadline in a developing legal situation. Faruqi & Faruqi, LLP, a prominent national securities law firm, is spearheading an investigation into Flux Power amidst allegations of significant financial discrepancies that may have misled investors and caused substantial losses.

The foundation of this investigation stems from claims that Flux Power, which trades on NASDAQ under the ticker FLUX, violated federal securities laws. Faruqi & Faruqi emphasizes the importance of timely action as the deadline to assume the role of lead plaintiff in a federal securities class action lawsuit against the Company is set for December 31, 2024. The firm urges any investors who have incurred losses exceeding $75,000 between November 11, 2022, and September 30, 2024, to reach out and discuss their legal recourse options.

Recent Developments

On September 5, 2024, Flux Power disclosed critical information in a Form 8-K filed with the SEC. The Board of Directors, along with its audit committee, determined that the previously issued audited consolidated financial statements, specifically for the fiscal year ending June 30, 2023, were no longer reliable. Errors present in these financial documents, primarily related to the accounting of inventory, necessitated a restatement. The new revelations have created turbulence in the stock market, leading to a drop in Flux Power’s share value.

In the wake of this announcement, Flux Power's stock experienced a significant decline. On the day following the news, shares fell by over 5%, closing at $3.00; this was further exacerbated with an additional drop to $2.88 shortly thereafter. The financial instability posed by these corrections raises serious concerns regarding the integrity of the company’s reporting practices and its management's responsibility.

Allegations Overview

The complaint outlines several key allegations related to Flux Power's financial misstatements, asserting that:

1. The financial statements produced from November 10, 2022, to the present showcased inflated figures in inventory, gross profit, current assets, and total assets.
2. There was a significant understatement of costs associated with sales and net loss, presenting a skewed image of profitability.
3. A necessary restatement of these financials is expected, further undermining investor confidence.
4. Claims of adequate internal controls were proven inaccurate, suggesting gross mismanagement at the executive level.
5. Ultimately, the firm’s communications to the public and investors represented a misleading narrative regarding its business operations and future prospects.

The court allows any member of the potential class to apply for the lead plaintiff position or to remain anonymous, maintaining their rights for any recovery.

Investor Rights and Steps Forward

Faruqi & Faruqi encourages investors facing losses to act quickly. Legal pathways are open for those with information related to these developments, including whistleblowers and former employees, to come forward and assist the investigation. An open line of communication remains for those interested in joining the class action lawsuit—contacting Faruqi & Faruqi directly is a recommended course of action.

As this investigation leads into the final month of the year, affected stakeholders should prepare to exercise their rights diligently. The outcomes from this legal inquiry could have far-reaching implications not just for Flux Power's shareholders, but also for its long-term viability in a competitive market. Ensure to stay informed and consider all legal options available to you during this pivotal moment.

For more detailed information, investors can visit Faruqi & Faruqi's dedicated page or contact partner Josh Wilson directly at the numbers provided.

Contact Details:
Phone: 877-247-4292
Address: Faruqi & Faruqi, LLP, New York, Pennsylvania, California, and Georgia.

This article is for informational purpose only and does not constitute legal advice.