Mercury Systems Faces Class Action Lawsuit Over Alleged Improper Revenue Recognition Practices

Investors have until February 12, 2024 to apply for lead plaintiff in the lawsuit following significant stock price drops.

Mercury Systems, Inc. is facing a class action lawsuit for allegedly using improper revenue recognition practices to mask deteriorating organic growth.
The lawsuit alleges that Mercury's acquisition strategy was not working and that the acquisition of Physical Optics Corporation caused it to lose its small business accreditation, preventing it from winning contracts that made up a large portion of its historical business.
Mercury is also accused of having at least twenty programs that were suffering and not performing well.
Mercury's stock price fell significantly on multiple occasions in response to these revelations, including when it announced weak third quarter 2023 earnings and lower margins, and when its CEO abruptly resigned.
Investors who purchased Mercury common stock between December 7, 2020 and June 23, 2023 have until February 12, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.