Quantum Corporation ("Quantum" or "the Company") sells scale-out tiered storage, archive and data protection solutions for capturing, sharing, managing and preserving digital assets in physical and virtual environments. Among other products, Quantum provides storage file systems, nearline storage systems, backup, and deduplication appliances, tape libraries, and cloud services.
According to the law firm press release, on February 8, 2018, Quantum disclosed that in January of 2018, the Company received a subpoena from the Securities and Exchange Commission (SEC) related to revenue recognition for certain transactions, prompting an internal investigation by Quantum, which remains ongoing. As a result, the Company announced that it "is postponing release of its fiscal third quarter 2018 results and its earnings conference call." On this news, Quantum's stock fell dramatically causing millions of dollars in losses to investors.
The complaint alleges that between July 27, 2016 through February 7, 2018 inclusive (the "Class Period"), Quantum and certain of its executives misrepresented the Company's financial results. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that (i) Quantum had inappropriately accounted for revenue relating to certain transactions commencing April 1, 2016; (ii) the Company lacked adequate internal controls over financial reporting; and (iii) that as a result of the foregoing, Quantum's publicly disseminated financial statements were materially false and misleading.
On May 16, 2018, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on July 30.
On June 28, 2019, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on July 26. On November 27, the Court granted final approval of the Settlement and entered Final Judgment.