Faruqi & Faruqi LLP Investigates Potential Claims Against Quantum Corporation for Investors

Investor Alert: Faruqi & Faruqi Investigates Quantum Corporation

Faruqi & Faruqi, LLP, a prominent securities law firm in the United States, is currently looking into potential claims on behalf of investors who suffered significant financial losses due to issues surrounding Quantum Corporation (NASDAQ: QMCO). Investors who incurred losses exceeding $75,000 from November 15, 2024, to August 18, 2025, may have legal recourse.

Details of the Investigation

The firm, led by Senior Partner James (Josh) Wilson, is urging affected investors to reach out to discuss their options. Affected investors can contact Mr. Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). The investigation comes in light of a federal securities class action filed against Quantum Corporation, which has a crucial deadline of November 3, 2025, for investors looking to take on the role of lead plaintiff.

According to the lawsuit, Quantum Corporation's management allegedly made false or misleading statements and failed to disclose critical information about their financial performance. Particularly notable were indications that the company improperly recognized revenue in their fiscal year ending on March 31, 2025. As a result, there will be a need to restate previously filed financial statements for the fiscal third quarter ending December 31, 2024.

Stock Price Impact

The lawsuit highlights a troubling timeline of events for Quantum Corporation and its investors. Initially, on June 30, 2025, the company announced that it would be unable to file its annual financial report on time due to a review of its accounting related to revenue contracts. Following this disclosure, Quantum's stock saw a notable drop of $1.00, equating to 10.03%, closing at $8.97.

The situation continued to deteriorate on August 8, 2025, when Quantum stated that its third-quarter financial statements “should no longer be relied upon” due to severe deficiencies in financial reporting controls. This announcement led to an additional drop in stock price of $0.14, or 1.79%, closing at $7.66.

Just ten days later, on August 18, 2025, investors faced further concerns as the company revealed the unexpected resignation of its CEO after a brief tenure of only five months. This news contributed to a staggering fall in Quantum’s stock price, plummeting $0.61, or 8.2%, to close at $6.83.

Legal Representation and Class Action Details

Investors are reminded that they have options in taking legal action. The role of a lead plaintiff is crucial as it involves directing and overseeing the litigation on behalf of the class. Investors can either move to become lead plaintiffs through legal counsel or choose to remain absent, with their rights intact regardless of this decision.

Faruqi & Faruqi, LLP invites anyone with further information regarding Quantum Corporation's conduct to come forward. This includes whistleblowers, former employees, and shareholders who might shed light on the unfolding situation. For up-to-date information and guidance regarding the class action concerning Quantum Corporation, you can visit Faruqi & Faruqi's dedicated website for QMCO.

The securities law firm has built a reputation for recovering hundreds of millions of dollars for investors since its establishment in 1995. Quantum Corporation's case is just one of many they are currently managing, emphasizing their commitment to protecting investors' rights and addressing financial mismanagement.

For more information about this case or to engage with Faruqi & Faruqi, contact Senior Partner Josh Wilson directly at the provided numbers. Remember, any form of inquiry will be handled with utmost confidentiality.