Luna Innovations (LUNA) in Freefall Again: Admits to More Accounting Errors Forcing Larger Restatement – Hagens Berman

SAN FRANCISCO, April 25, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Luna Innovations Incorporated (NASDAQ: LUNA) investors who suffered substantial losses to submit your losses now.

Current Class Period: Aug. 11, 2023 – Mar. 25, 2024
Lead Plaintiff Deadline: May 31, 2024
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Luna Innovations Incorporated (LUNA) Securities Fraud Class Action:

On Apr. 19, 2024, shares in Luna Innovations crashed after the fiber optics company revealed that its anticipated restatement of prior financial statements has expanded to now cover all of 2022 in addition to the first quarter of 2023, as a result of accounting errors.

The bombshell dropped after Luna's Audit Committee, with the help of external advisors, unearthed critical errors in how the company recognized revenue in financial filings dating back to Mar. 31, 2022. Luna says these accounting errors resulted in misstated financial results and that previously issued reports, press releases, and any communication regarding the affected periods should not be relied upon. The company’s independent auditor, Ernst & Young LLP, is also included in this caution.

The Roanoke-based company’s latest revelation follows its Mar. 12, 2024 admission that it improperly recognized revenue during the quarters ended June 30, 2023 and Sept. 30, 2023. Less than two weeks later, on Mar. 24, 2024 the company’s CEO Scott Graeff abruptly left the company.

Luna has not yet quantified the improperly recorded revenues, but these disclosures have sent Luna’s share price on a tailspin, as its stock has lost more than half its value.

Luna’s improper revenue recognition has also led to an investor class action. While Hagens Berman is investigating the expansion of the current period, the existing securities class action brought on behalf of Luna investors against both Luna and its senior executives alleges that Defendants made misleading statements and failed to disclose that: (1) Luna’s financial statements from Aug. 10, 2023 to the present included false figures as a result of improper revenue recognition; (2) as a result, Luna would be required to restate financial statements filed during Aug. 10, 2023 through Nov. 14, 2023; and (3) it lacked adequate internal controls.

“We’re investigating whether the alleged fraudulent period should be expanded based on Luna’s latest disclosure,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Luna Innovations and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman »

If you’d like more information and answers to frequently asked questions about the Luna Innovations case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Luna Innovations should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

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Contact:
Reed Kathrein, 844-916-0895