The Law Offices of Frank R. Cruz Announces Investigation of Mercury Systems, Inc. (MRCY) on Behalf of Investors
LOS ANGELES, Jan. 13, 2023 (GLOBE NEWSWIRE) — The Law Offices of Frank R. Cruz announces an investigation of Mercury Systems, Inc. (“Mercury Systems” or the “Company”) (NASDAQ: MRCY) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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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 August 2, 2022, Mercury Systems reported fourth quarter 2022 revenue of $289.7 million – below the $301.5 million to $321.5 million expected from previous guidance. The Company also reported non-GAAP EPS of $0.81, missing consensus estimates by $0.17.
On this news, Mercury Systems’ stock price fell $7.67, or 13.3%, to close at $49.81 per share on August 3, 2022, thereby injuring investors further.
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If you purchased Mercury Systems securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
[email protected]
www.frankcruzlaw.com
