A Shareholder Class Action Lawsuit Filed Against Flux Power Holdings

ATLANTA, Nov. 06, 2024 (GLOBE NEWSWIRE) —

A shareholder class action lawsuit has been filed against Flux Power Holdings, Inc. (“Flux Power” or “the Company”) (NASDAQ: FLUX). The lawsuit alleges that Defendants made materially false and misleading statements and/or failed to disclose material adverse information regarding the Company’s business, operations, and prospects.

The allegations include that Flux Power’s financial statements from November 10, 2022 to the present included, among other things, overstated inventory, gross profit current assets, and total assets. Additionally, it is claimed that Flux Power understated cost of sales and net loss. As a result, Flux Power may need to restate its previously filed financial statements from November 10, 2022. Moreover, the lawsuit alleges that Flux Power understated internal control weaknesses or stated that it had adequate internal controls when in fact it did not.

Impact on Individuals

As an individual shareholder of Flux Power, this lawsuit may have financial implications for you. If the allegations are proven true, there could be a negative impact on the company’s stock price, potentially resulting in financial losses for shareholders.

Global Implications

The outcome of this lawsuit could have broader implications for the world of investing and corporate governance. If Flux Power is found guilty of the allegations, it may lead to increased scrutiny on other companies and potentially impact investor confidence in the stock market as a whole.

Conclusion

Overall, the shareholder class action lawsuit filed against Flux Power Holdings raises serious concerns about the transparency and accuracy of financial reporting in the corporate world. It serves as a reminder for investors to conduct thorough due diligence before making investment decisions and highlights the importance of strong internal controls within companies.