The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Luna Innovations Incorporated (LUNA) Investors
The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Luna Innovations Incorporated ("Luna" or the "Company") (NASDAQ: LUNA) securities between August 11, 2023 and March 25, 2024, inclusive (the "Class Period"). Luna investors have until May 31, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On March 12, 2024, Luna disclosed that "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," and that the Company's previously issued financial statements for those quarters should no longer be relied upon. Additionally, Luna stated that it had identified material weaknesses in its internal control over financial reporting, and it would be delaying the release of its fourth quarter and full year 2024 financial results.
On this news, Luna's stock price fell $2.24, or 35.8%, to close at $4.02 per share on March 13, 2024, thereby injuring investors.
Then, on March 24, 2024, the Company announced that its President and Chief Executive Officer had retired, effective immediately.
On this news, Luna's stock price fell $0.41, or 11.5%, to close at $3.14 per share on March 26, 2024, 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) Luna financial statements from August 10, 2023 to the present included false figures as a result of improper revenue recognition; (2) as a result, Luna would need to restate its previously filed financial statements from August 10, 2023 to November 14, 2023; (3) Luna lacked adequate internal controls; 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.
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If you purchased Luna securities during the Class Period, you may move the Court no later than May 31, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class 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. If you purchased Luna 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, 2121 Avenue of the Stars, Suite 800, 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.
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