Robbins Arroyo LLP: Mercury Systems, Inc. (MRCY) Accused of Misleading Investors According to Class Action
SAN DIEGO & ANDOVER, Mass.--(BUSINESS WIRE)--Jul 12, 2018--Shareholder rights law firm announces that purchasers of Mercury Systems, Inc. (NasdaqGS: MRCY) filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between October 24, 2017 and April 24, 2018. Mercury Systems provides sensor and safety critical mission processing subsystems for various critical defense and intelligence programs in the United States.
View this information on the law firm’s Shareholder Rights Blog: www.robbinsarroyo.com/mercury-systems-inc
About the complaint
According to the complaint, Mercury touted that the company’s business model was working very well and noted that fiscal 2018 would yield stronger cash flows compared to fiscal 2017. Despite such optimistic predictions, on April 24, 2018, Mercury revealed the company’s free cash flow was a net outflow of $2.6 million, compared to a net inflow of $11.9 million in the previous year’s comparable quarter, due to the company’s integration of its acquisitions and its decision to in-source its manufacturing. In a conference call to discuss the company’s financial results, Mercury admitted that it had been experiencing problems with cash for the last three quarters, and further stated that the company should begin to see improvements in EBITDA to free cash flow run in fiscal 2019. On this news, Mercury’s stock fell over 18% to close at $34.91 on April 25, 2018.
Mercury Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180712005786/en/
CONTACT: Leonid Kandinov
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
Copyright Business Wire 2018.
PUB: 07/12/2018 02:30 PM/DISC: 07/12/2018 02:31 PM