NEW YORK, April 25, 2024 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Luna Innovations Incorporated (“Luna” or the “Company”) (NASDAQ: LUNA) and reminds investors of the May 31, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Luna To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $50,000 investing in Luna stock or options between August 11, 2023 and March 25, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/LUNA.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Luna Innovations financial statements from August 10, 2023 to the present included false figures as a result of improper revenue recognition; (2) as a result, Luna Innovations would need to restate its previously filed financial statements from August 10, 2023 to November 14, 2023; (3) Luna Innovations lacked adequate internal controls; and (4) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
On Mar. 25, 2024, Luna announced that its CEO Scott Graeff has retired from his role as President and Chief Executive Officer of the Company and has stepped down from the Board of Directors, sending the price of fiber optic test and control company Luna Innovations shares sharply lower during intraday trading. Luna announced that its Board has initiated a search for a new President and CEO, and that longtime Chairman Richard Roedel has been appointed Executive Chairman and President on an interim basis.
Graeff’s announced retirement immediately follows Luna’s Mar. 12, 2024 disclosure that it would need to restate its financial statements for the second and third quarters of 2023 due to revenue recognition errors. As of Mar. 25, 2024, the company has still not filed its 2023 annual report or described the nature and magnitude of the restatement, creating a massive overhang on the stock.
On March 12, 2024, Luna announced it will delay the release of its fourth quarter and fiscal year 2023 financial results. A Special Committee of the Company’s Board of Directors is conducting an independent review, with the aid of external legal and financial advisors, of certain transactions for which revenue was recognized in the second and third quarters of 2023 that did not qualify for revenue recognition under U.S. generally accepted accounting principles. Additionally, the Company expects to report material weaknesses in internal controls.
To be noted, on October 17, 2023, Luna announced that its Chief Financial Officer (Eugene Nestro) abruptly left his position; no explanation for Nestro’s departure was given at the time.
Following the delayed filing news, Luna stock was 23% lower in pre-market trading on March 13, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Luna’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE Faruqi & Faruqi, LLP
