Case Summary

Mercury Systems

NASDAQ: MRCY

Case Details

  • North Collier Fire Control and Rescue District Firefighters' Pension Plan v. Mercury Systems, Inc. et al.
  • Class Period:December 7, 2020 - June 23, 2023
  • Date Filed:December 12, 2023
  • Jurisdiction:U.S. District Court, District of Massachusetts
  • Docket Number: 1:23-cv-13065
  • Lead Plaintiff Deadline: February 12, 2024
Days Left to
Seek Plaintiff
0

Overview

A class action lawsuit has been filed against Mercury Systems, Inc., (“Mercury Systems”, “Mercury” or the “Company”) (NASDAQ: MRCY) and certain of the Company’s top executive officers alleging that they violated the federal securities laws. The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired Mercury securities between December 7, 2020, and June 23, 2023, both dates inclusive (the “Class Period”).

Mercury Systems is a technology company that produces component modules and subsystems for the aerospace and defense industries. Prior to and during the Class Period, Mercury was a serial acquirer that used acquisitions and improper revenue recognition practices to mask its inability to grow organically. During the Class Period, Defendants repeatedly touted the success of the Company’s growth, painting a false rosy financial picture for investors.

The lawsuit alleges that defendants repeatedly misled investors to believe that their growth was organic by misrepresenting several elements of Mercury’s business, including by hiding that Mercury had switched from “point-in-time” to “long-term contracts” in order to improperly boost reported revenues and that several of Mercury’s projects were in significant distress, including projects related to Mercury’s acquisition of Physical Optics Corporation. Mercury also lied to investors about its strategic growth initiative, 1MPACT, which was designed to improve profit margins but unbeknownst to investors was used to disguise regular expenses as restructuring costs, enabling Mercury to claim that recurring expenses were one-time costs.

The market was thus shocked when Glasshouse Research issued a short seller report on July 26, 2022, that revealed the truth of these issues. The issuance of the report from Glasshouse Research caused Mercury’s stock to drop 7.8%. The full truth of the state of Mercury’s business was then revealed piecemeal to the market through several partial disclosures that took place between July 26, 2022, and June 23, 2023. During this time, the Company’s share price declined nearly 50%, wiping out billions of dollars in market capitalization and damaging investors.

*            *            *

If you purchased or otherwise acquired publicly traded Mercury securities between December 7, 2020, and June 23, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Mercury Systems lawsuit is February 12, 2024.

Join This Action

Name(Required)
Address(Required)
Are you a current or former employee at the company?(Required)

Purchases

Purchases Buy Date Quantity Purchase Price per share or security Actions
       

Sales

Sale Type Sale Date Quantity Sale Price per share or security Actions
       

Upload Documents

Drop files here or
Accepted file types: xls, xlsx, doc, pdf, jpg, jpeg, Max. file size: 50 MB, Max. files: 5.