ON - Bragar Eagel & Squire P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Mercury Systems and onsemi and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, Jan. 01, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Mercury Systems, Inc. (NASDAQ:MRCY), and ON Semiconductor Corporation (NASDAQ:ON). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Mercury Systems, Inc. (NASDAQ:MRCY)
Class Period: December 7, 2020 - June 23, 2023
Lead Plaintiff Deadline: February 12, 2024
Mercury Systems is a technology company that produces component modules and subsystems for the aerospace and defense industries. In December 2020, Mercury Systems acquired Physical Optics Corporation ("POC").
The Mercury Systems class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statement and/or failed to disclose that: (i) Mercury Systems' serial acquirer strategy was not working and Mercury Systems was using improper revenue recognition practices such as changing to long-term contracts to mask deteriorating organic growth; (ii) Mercury Systems' acquisition of POC caused POC to lose its small business accreditation, which prevented POC from winning contracts that made up a large portion of its historical business; (iii) Mercury Systems had at least twenty programs that were suffering and not performing well; and (iv) Mercury Systems' initiative to increase margins was not working and was in fact cutting into margins.
The Mercury Systems class action lawsuit further alleges that on July 26, 2022, Glasshouse Research initiated coverage of Mercury Systems with a strong sell report entitled "Roll-Up Mercury Systems Set to Unravel." The Mercury Systems class action lawsuit alleges that on this news, the price of Mercury Systems common stock fell nearly 8%.
Then, as the Mercury Systems class action lawsuit further alleges, on May 2, 2023, Mercury Systems reported its third quarter of 2023 financial results which revealed that Mercury Systems forecast revenue to be in the range of $990.0 million to $1.01 billion (down from $1.01 billion to $1.05 billion), GAAP net loss of $19.0 million to $11.1 million (down from GAAP net income of $13.9 million to $24.8 million), adjusted EBITDA in a range of $160.0 million to $170.0 million (down from $202.5 million to $215.0 million), and adjusted EPS in a range of $1.36 to $1.50 per share (down from $1.90 to $2.08 per share). On this ...