RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Mercury Systems, Inc. (“Mercury ” or the “Company”) (NASDAQ: MRCY) securities between October 24, 2017 and April 24, 2018, inclusive (the “Class Period”).
Mercury shareholders may, no later than September 10, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Mercury and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
The Complaint alleges that Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Mercury’s decision to in-source processing was adversely impacting Mercury’s operating margins and free cash-flow generation and conversion; (2) Mercury’s model was becoming structurally more working capital intensive; and (3) consequently, Mercury’s public statements were materially false and misleading at all relevant times.
On April 24, 2018, Mercury revealed the company’s free cash flow was a net outflow of $2.6 million, compared to a net inflow of $11.9 million in the previous year’s comparable quarter, due to the company’s integration of its acquisitions and its decision to in-source its manufacturing. In a conference call to discuss the company’s financial results, Mercury admitted that it had been experiencing problems with cash for the last three quarters, and further stated that the company should begin to see improvements in EBITDA to free cash flow run in fiscal 2019.
On this news, Mercury’s stock fell over 18% to close at $34.91 on April 25, 2018.
If you are a member of the class, you may, no later than September 10, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.