Financial News
Kirby McInerney LLP Announces an Investigation of Shareholder Claims Against Mercury Systems, Inc. (MRCY)
The law firm of Kirby McInerney LLP is investigating potential claims against Mercury Systems, Inc. (“Mercury” or the “Company”) (NASDAQ: MRCY). The investigation concerns whether Mercury and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices.
Mercury provides commercially-developed sensor processing subsystems.
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 this news, the price of Mercury shares declined by $4.87 per share, or approximately 7.84%, from $62.13 per share to close at $57.26 on July 26, 2022.
On August 2, 2022, Mercury Systems reported fourth quarter 2022 revenue of $289.7 million—below the $301.5 million to $321.5 million expected from previous guidance. The Company also reported non-GAAP EPS of $0.81, missing consensus estimates by $0.17. On this news, the price of Mercury shares declined by $7.67 per share, or approximately 13.34%, from $57.48 per share to close at $49.81 on August 3, 2022.
If you purchased or otherwise acquired Mercury securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230117006164/en/
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
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