Grant & Eisenhofer Files Class Action Lawsuit Against Mercury Systems, Inc. on Behalf of Institutional Investor
December 13 2023 - 1:22PM
Business Wire
Institutional investor and defined benefit pension fund North
Collier Fire Control and Rescue District Firefighters’ Pension Plan
filed a class action lawsuit today against Mercury Systems, Inc.
(“Mercury” or the “Company”), Mark Aslett, and Michael Ruppert,
alleging they defrauded investors by issuing false and misleading
statements concerning the state of Mercury’s business and financial
results.
The suit, brought in federal court in the United States District
Court for the District of Massachusetts was filed by leading
investor law firm Grant & Eisenhofer P.A.
The action is brought on behalf of all persons or entities who
purchased or acquired Mercury common stock between December 7,
2020 and June 23, 2023, inclusive (the “Class Period”). The
action is captioned North Collier Fire Control and Rescue District
Firefighters’ Pension Plan v. Mercury Systems, Inc., Mark Aslett,
and Michael Ruppert, 1:23-cv-13065 (D. Mass.).
The complaint alleges violations of Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934. Specifically, Mercury is a
technology company that produces component modules and subsystems
for the aerospace and defense industries. Prior to and during the
Class Period, Mercury was a serial acquirer that used acquisitions
and improper revenue recognition practices to mask its inability to
grow organically. During the Class Period, Defendants repeatedly
touted the success of the Company’s growth, painting a false rosy
financial picture for investors. Defendants repeatedly misled
investors to believe that their growth was organic by
misrepresenting several elements of Mercury’s business, including
by hiding that Mercury had switched from “point-in-time” to
“long-term contracts” in order to improperly boost reported
revenues and that several of Mercury’s projects were in significant
distress, including projects related to Mercury’s acquisition of
Physical Optics Corporation. Mercury also lied to investors about
its strategic growth initiative, 1MPACT, which was designed to
improve profit margins but unbeknownst to investors was used to
disguise regular expenses as restructuring costs, enabling Mercury
to claim that recurring expenses were one-time costs.
The market was thus shocked when Glasshouse Research issued a
short seller report on July 26, 2022 that revealed the truth of
these issues. The issuance of the report from Glasshouse Research
caused Mercury’s stock to drop 7.8%. The full truth of the state of
Mercury’s business was then revealed piecemeal to the market
through several partial disclosures that took place between July
26, 2022 and June 23, 2023. During this time, the Company’s share
price declined nearly 50%, wiping out billions of dollars in market
capitalization and damaging investors.
For investors who purchased or acquired Mercury common stock
during the Class Period, you are a member of this proposed Class
and may be able to seek appointment as lead plaintiff, which is a
court-appointed representative for the Class, by complying with the
relevant provisions for the Private Securities Litigation Reform
Act of 1995 (the “PSLRA”). See 15 U.S.C. Section
78u-4(a)(2)(A)(i)-(iv). If you wish to serve as lead plaintiff,
you must move the Court by no later than February 12, 2024,
which is the lead plaintiff deadline that was established by
publication of this notice on December 13, 2023. You do not need
seek to become a lead plaintiff in order to share in any possible
recovery. You may also retain counsel of your choice to represent
you in this action.
If you wish to discuss this action or have any questions
concerning this notice or your rights, please contact Caitlin M.
Moyna at Grant & Eisenhofer at 646-722-8513, or via email at
cmoyna@gelaw.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20231213173036/en/
Grant & Eisenhofer Caitlin M. Moyna 646-722-8513
cmoyna@gelaw.com
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