Pomerantz Law Firm Files Class Action Against Flux Power Holdings, Inc.

Class Action Lawsuit Filed Against Flux Power Holdings, Inc.

On November 25, 2024, the Pomerantz Law Firm disclosed the initiation of a class action lawsuit against Flux Power Holdings, Inc. (NASDAQ: FLUX). This legal action comes in response to concerns surrounding potential fraudulent activities and other illicit business practices reportedly involving the company's officers and directors.

Shareholders who acquired Flux securities during the specified class period are being encouraged to come forward. As indicated by Pomerantz LLP, there are avenues available for shareholders to seek appointment as Lead Plaintiff in this case, particularly notable due to the significant implications this may hold for the company’s future. Interested parties can reach out directly to attorney Danielle Peyton via email at [email protected] or by phone at 646-581-9980.

The class action stems from a range of alarming revelations made by Flux Power regarding inaccuracies in their previously submitted financial statements. In a filing with the U.S. Securities and Exchange Commission (SEC) dated September 5, 2024, Flux reported that their Board of Directors had determined their earlier financial results should no longer be deemed reliable. Inconsistencies due to improper inventory accounting practices have led to a restatement of financial records concerning several fiscal periods. This includes a notable $1.2 million in abandoned and outdated inventory and another $0.5 million worth of misclassified assets. Consequently, this mismanagement has resulted in both inflated assets on the balance sheet and misleading financial performance indicators.

After these revelations, Flux Power witnessed a marked decline in stock value. On September 6, 2024, shares plummeted by 5.36%, settling at $3.00, while another drop occurred on October 1, leading to an additional 5.9% decrease, bringing the stock price to $2.86. These movements in market value highlight the tumultuous impact of the disclosed financial discrepancies and the ensuing concerns from investors.

Furthermore, as of September 30, 2024, Flux Power notified the SEC of its failure to submit its Annual Report on Form 10-K for the fiscal year ending June 30, 2024, in a timely manner. This notice precipitated further stock price declines, casting a shadow over the company's corporate governance and responsibilities.

Pomerantz LLP stands out in the field of class action litigation, noted for its expertise in corporate and securities law and its pivotal role in addressing shareholder grievances. Established by the influential Abraham L. Pomerantz, the firm has built a reputation for standing up against corporate misconduct and securing significant settlements for class members over its 85-year history.

The outcome of this class action could serve as a pivotal moment for the company and its shareholders. Not only does it signal accountability for management practices, but it also reaffirms the necessity for transparency within publicly traded companies. With ongoing investigations and evaluations of past financial statements, there remains an urgent need for Flux Power to restore trust among its investors and the broader financial market.

Those who believe they have standing in this case are urged to gather pertinent information and consult with legal representation experienced in securities law. Help can also be sought via Pomerantz’s legal team, who are tasked with navigating the complexities surrounding this case. For shareholders, knowledge is power, especially when navigating the turbulent waters of potential financial malfeasance.

In light of this situation, it is essential for investors to stay informed and vigilant about updates related to Flux Power’s ongoing legal matters, as the ramifications of this lawsuit could significantly affect both the stock's performance and overall company structure moving forward.