San Diego, CA -- (SBWIRE) -- 01/19/2024 -- An investor, who purchased NASDAQ: MRCY shares, filed a lawsuit against Mercury Systems, Inc over alleged violations of Federal Securities Laws.

Investors who purchased shares of Mercury Systems, Inc. (NASDAQ: MRCY) have certain options and for certain investors are short and strict deadlines running. Deadline: February 12, 2024. NASDAQ: MRCY investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Andover, MA based Mercury Systems, Inc., a technology company, manufactures and sells components, products, modules, and subsystems for aerospace and defense industries in the United States, Europe, and the Asia Pacific. 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 May 2, 2023, after the market closed, Mercury Systems, Inc announced its third quarter 2023 earnings and lower margins, causing the Company to cut its full year 2023 guidance.

Then, on June 23, 2023, Mercury Systems, Inc announced that its Chief Executive Officer had abruptly resigned, and that the Company's recent strategic review of acquisition alternatives had been unsuccessful.

Shares of Mercury Systems, Inc. (NASDAQ: MRCY) declined from $88.96 per share on December 31, 2020, declined to as low as $28.90 per share on June 26, 2023.

The plaintiff claims that between December 7, 2020 through June 23, 2023, the Defendants made false and/or misleading statements, as well as failed to disclose that Mercury System's serial acquiror strategy was not working and the company was using improper revenue recognition practices such as changing to long-term contracts to mask deteriorating organic growth, that the acquisition of Physical Optics Corporation ("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, that Mercury Systems had at least twenty programs that were suffering and not performing well, and that 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.

Those who purchased shares of Mercury Systems, Inc. (NASDAQ: MRCY) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.