Our attorneys are investigating potential securities claims on behalf of investors of Quantum Corporation (NYSE:QTM) resulting from allegations that Quantum may have issued materially misleading business information to the investing public.
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Quantum Discloses Receipt of SEC Subpoena
On February 8, 2018, Quantum, “a leading expert in scale-out tiered storage, archive and data protection,” announced that it received a subpoena from the Securities and Exchange Commission on January 11, 2018 regarding its accounting practices and internal controls related to revenue recognition for transactions commencing April 1, 2016. Quantum further stated it was postponing the release of its fiscal third quarter 2018 results and earnings conference call so that its audit committee could complete an investigation into Quantum’s accounting matters and related internal controls.
Quantum Corporation Postpones Earnings Conference Call
Specifically, Quantum Corporation’s earnings postponement announcement stated that QTM is
. . . postponing release of its fiscal third quarter 2018 results and its earnings conference call, which were scheduled for this afternoon. [Quantum] is taking this action so that Quantum’s audit committee, in keeping with its strong corporate governance practices, can complete an investigation into accounting matters and related internal controls that were raised in response to a recent inquiry by the Securities and Exchange Commission (SEC).
Further, Quantum stated:
“On Jan. 11, 2018, Quantum received a subpoena from the SEC regarding its accounting practices and internal controls related to revenue recognition for transactions commencing April 1, 2016. Following receipt of the SEC subpoena, [Quantum’s] audit committee began an independent investigation with the assistance of independent advisors, which is currently in process. Because the audit committee’s investigation is ongoing, Quantum decided it was prudent to postpone its quarterly results release and conference call, pending conclusion of the investigation. [Quantum] is cooperating with the SEC and cannot predict the timing of completion or outcome of either the audit committee’s investigation or the SEC’s inquiry at this time.” (Emphasis added.)
On this news, the price of Quantum stock shares dropped nearly 30% on February 8, 2018, to close at $3.90.
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