Mercury Systems, Inc. (NASDAQ: MRCY)

This lawsuit is for anyone who acquired securities in Mercury Systems, Inc. (NASDAQ: MRCY) from December 7, 2020 through June 23, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that the Company was experiencing organic growth when, in fact, the Company knew it was not growing as it stated and was, in fact, making acquisitions for the purpose of concealing that the Company was not growing organically.

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 the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on May 2, 2023, after the market closed, Mercury announced weak third quarter 2023 earnings and lower margins, causing the Company to cut its full year 2023 guidance. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on June 23, 2023, Mercury announced that its CEO had abruptly resigned and that the Company’s recent strategic review of acquisition alternatives had been unsuccessful. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Mercury Systems, Inc. (NASDAQ: MRCY) from December 7, 2020 through June 23, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.