Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Mercury Systems, Inc. (MRCY)

By: Law Offices of Howard G. Smith via Business Wire

December 26, 2023 at 12:27 PM EST

Law Offices of Howard G. Smith reminds investors of the upcoming February 12, 2024 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Mercury Systems, Inc. (“Mercury” or the “Company”) (NASDAQ: MRCY) common stock between December 7, 2020 and June 23, 2023, inclusive (the “Class Period”).

Investors suffering losses on their Mercury investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

On July 26, 2022, Glasshouse Research published a report detailing how its “analysis on [Mercury Systems] will reveal how management has used accounting gimmicks to obfuscate true economic earnings while concealing the decay of its core company.” Specifically, the report stated that the Company’s management has “prematurely recognized revenue on significant projects boosting both revenue and earnings unsustainably” while also using recent acquisitions to conceal true earnings “with material non-GAAP exclusions,” and that the Company’s free-cash-flow is “grossly overstated as the company has been stifling its vendors to conserve cash.” On this news, Mercury Systems’ stock price fell $4.87, or 7.8%, to close at $57.26 per share on July 26, 2022, thereby injuring investors.

Then, on May 2, 2023, after the market closed, Mercury announced weak third quarter 2023 earnings and lower margins, causing the Company to cut its full year 2023 guidance. On this news, Mercury’s stock price fell $7.84, or 17.3%, to close at $37.44 per share on May 3, 2023.

Then, on June 23, 2023, Mercury announced that its CEO had abruptly resigned and that the Company’s recent strategic review of acquisition alternatives had been unsuccessful. On this news, Mercury’s stock price fell $3.37, or 9.6%, to close at $31.50 per share on June 26, 2023, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Mercury’s serial acquiror strategy was not working and the company was using improper revenue recognition practices such as changing to long-term contracts to mask deteriorating organic growth; (2) the Acquisition caused POC to lose its small business accreditation, which prevented POC from winning contracts that made up a large portion of its historical business; (3) Mercury had at least twenty programs that were suffering and not performing well; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired Mercury common stock during the Class Period, you may move the Court no later than February 12, 2024 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231226322332/en/

Contacts

Law Offices of Howard G. Smith

Howard G. Smith, Esquire

215-638-4847

888-638-4847

howardsmith@howardsmithlaw.com

www.howardsmithlaw.com

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Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Mercury Systems, Inc. (MRCY)

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