Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Luna Innovations Incorporated (LUNA)
NEW YORK, May 16, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired Luna Innovations Incorporated (“Luna Innovations” or the “Company”) (NASDAQ: LUNA) securities between May 16, 2022 and April 19, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.The Complaint in the lawsuit alleges that 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, the Complaint alleges that the Defendants failed to disclose to investors that: (1) Luna’s 1Q – 3Q22, FY22, and 1Q – 3Q23 Reports contained unearned revenues that should not have been recognized; (2) Luna would need to restate financial statements that it filed during May 16, 2022 through and including November 14, 2023; (3) Luna’s disclosure controls and procedures did not provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (4) Luna’s disclosure controls and procedures were not effective; and (5) 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.
The Complaint also alleges that, on March 12, 2024, after the market closed, Luna Innovations filed with the SEC a current report on Form 8-K announcing it would need to restate its financial statements for the second and third quarters of 2023 (the “First Restatement Announcement”) because the Company improperly recognized revenues during these periods. The Complaint further alleges that, also on March 12, 2024, after the market closed, the Company filed with the SEC a late filing notice on Form NT 10-K (the “Late Filing Notice”).
The Complaint alleges that on this news, the price of Luna Innovations stock fell $2.24 per share, or 35.78%, to close at $4.02 on March 13, 2024.
The Complaint further alleges that on March 25, 2024, after the market closed, the Company filed with the SEC a current report on Form 8-K (the “March 25 Form 8-K”) which announced that Defendant Graeff had retired, effective immediately. According to the Complaint’s allegations, upon information and belief, Defendant Graeff retired as a result of the misconduct.
The Complaint further alleges that the price of Luna Innovations stock fell by $0.41 per share, or 11.54%, to close at $3.14 on March 26, 2024.
Investors who purchased or otherwise acquired shares of Inspire Medical should contact the Firm* prior to the May 31, 2024 *lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.