FOR IMMEDIATE RELEASE
WASHINGTON, D.C. March 2, 2018– Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Quantum Corporation (“Quantum” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Northern District of California by another law firm on behalf of purchasers of the common stock of Quantum (NYSE: QTM) between May 10, 2016 and February 7, 2018, inclusive (the “Class Period”).
The complaint alleges that Quantum and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) Quantum was inappropriately recognizing certain revenues since at least April 2016; (2) the Company lacked adequate controls over accounting and financial reporting; (3) as a result the Company was subject to increased regulatory scrutiny and potential fines; and, (4) Defendants’ statements about Quantum’ business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
On November 13, 2017, Quantum announced the resignation of its CEO Jon Gacek, effective November 7, 2017, and his replacement by interim CEO Adalio Sanchez. Quantum provided no further details on Gacek’s resignation.
On February 8, 2018, Quantum issued a press release announcing a postponement of issuing its third quarter 2017 financial results and the earnings call, both scheduled for that afternoon. The delay was due to a continuing investigation by the Company’s Audit Committee into “accounting matters and related internal controls that were raised in response to a recent inquiry by the Securities and Exchange Commission (SEC).” The price of Quantum shares fell from $5.57 on February 7, 2018 to $3.90 on February 8. 2018.
Cohen Milstein encourages all investors who purchased Quantum common stock between May 10, 2016 and February 7, 2018, or former employees with information concerning this matter to contact the firm.
If you are a Quantum shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than April 16, 2018 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for many outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or regarding your rights, please contact either of the following:
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600