Symbotic Inc. Faces Fraud Lawsuit: Important Information for Investors

NEW YORK, Dec. 24, 2024 (GLOBE NEWSWIRE) -- The notable securities law firm Bleichmar Fonti & Auld LLP has announced that a lawsuit has been initiated against Symbotic Inc. (NASDAQ: SYM) along with several senior executives of the company for alleged violations of federal securities laws.

Investors who hold shares in Symbotic are encouraged to seek further information by visiting here.

Those interested in leading the case have until February 3, 2025, to make their requests to the court. The complaint includes claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors of Symbotic. The case is currently filed in the U.S. District Court for the District of Massachusetts, titled Decker v. Symbotic Inc., et al., No. 24-cv-12976.

Overview of the Symbotic Class Action Lawsuit

Symbotic Inc. specializes in developing and managing robotic systems aimed at automating and enhancing warehouse and supply chain operations for various large retailers and distributors. During the relevant time frame, the company contended that its financial statements were reliable and that it maintained effective internal controls for financial reporting.

However, on November 27, 2024, Symbotic disclosed a delay in filing its Form 10-K for the fiscal year 2024, attributing this to identified inaccuracies in revenue recognition and declaring significant weaknesses in its internal financial controls. The announcement divulged that issues related to premature expense recognition and unbillable cost overruns impacted revenue reporting across multiple quarters of the fiscal year 2024. As a consequence, the company projected a decrease of approximately $30 to $40 million in system revenue, gross profit, and adjusted EBITDA for fiscal year 2024. It also revised its revenue forecast for the first quarter of fiscal 2025, now estimating between $480 to $500 million, a reduction from the previous estimate of $495 to $515 million, along with an adjusted EBITDA of $12 to $16 million, down from $27 to $31 million.

This announcement led to a drastic decline in the company's stock price, dropping over 35% during trading on November 27, 2024.

What Should Investors Do?

If you are a Symbotic investor, it is crucial to understand your legal options. You are invited to provide your information to Bleichmar Fonti & Auld LLP for further assistance.

All representation by the firm operates on a contingency fee basis, meaning you will incur no costs unless the firm recovers funds on your behalf. Shareholders won’t be liable for any court costs or litigation expenses, with the firm seeking court approval for any applicable fees and costs.

To share your details and learn more, please visit here.

About Bleichmar Fonti & Auld LLP

Bleichmar Fonti & Auld LLP is recognized as a leading international law firm that advocates for plaintiffs in securities class actions and shareholder litigation. The firm was highlighted as one of the Top 5 plaintiff law firms by ISS SCAS in 2023, and its attorneys have received accolades such as Titans of the Plaintiffs' Bar by Law360 and SuperLawyers by Thomson Reuters. Among recent notable recoveries, BFA has obtained over $900 million from the Board of Directors of Tesla, Inc. (pending court approval) and $420 million from Teva Pharmaceutical Industries Ltd..

For additional information regarding BFA and its team of attorneys, please visit here.

Please note: Attorney advertising. Previous results do not assure future outcomes.

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