Symbotic Investors: Class Action Lawsuit Filed with Deadline Approaching

NEW YORK, Dec. 22, 2024 (GLOBE NEWSWIRE) -- A significant development has arisen for investors of Symbotic Inc. (NASDAQ: SYM). The reputable securities law firm Bleichmar Fonti & Auld LLP has announced the filing of a lawsuit against the company and several of its senior executives, potentially for breaching federal securities laws.

Investors of Symbotic are encouraged to seek more information about this case. The details of the lawsuit can be found by visiting this link.

As of now, investors have until February 3, 2025, to file a motion to take lead in the case. The lawsuit brings forth claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, representing shareholders who purchased Symbotic securities. This case is currently pending in the U.S. District Court for the District of Massachusetts, listed under Decker v. Symbotic Inc., et al., No. 24-cv-12976.

Overview of the Allegations

Symbotic Inc. specializes in developing robotic systems aimed at enhancing and automating operations in warehouses and supply chains for large retail and distribution companies. Throughout the period in question, the firm asserted that its financial reports were correct and that its internal controls for financial reporting were functioning effectively.

However, on November 27, 2024, Symbotic disclosed problems that contradicted these statements. The company revealed a delay in submitting its Form 10-K for the fiscal year 2024, citing identified errors in revenue recognition and significant deficiencies in its internal controls over financial reporting. The announcement included issues such as premature expense recognition and billing issues that had negatively impacted revenue accounting for several quarters during fiscal year 2024.

The consequences were substantial, as Symbotic estimated a decrease of $30–$40 million in system revenue, gross profits, and adjusted EBITDA for fiscal year 2024. Additionally, the revenue forecast for the first quarter of fiscal year 2025 was lowered, with expected figures now ranging from $480–$500 million, down from $495–$515 million, and adjusted EBITDA projected to be between $12–$16 million, reduced from $27–$31 million.

This troubling news resulted in a drop of over 35% in the company’s stock price during trading on the day following the announcement.

How to Respond

If you are a Symbotic investor and have experienced losses, it is important to understand your legal options. You may submit your information to the law firm, which operates on a contingency fee basis, meaning there are no upfront costs to you, and shareholders will not be responsible for court fees or litigation expenses unless approved by the court.

For further action, visit this link to submit your information.

About Bleichmar Fonti & Auld LLP

Bleichmar Fonti & Auld LLP is a prominent international law firm focused on representing plaintiffs in securities class action cases and shareholder lawsuits. Ranked among the top five plaintiff law firms by ISS SCAS in 2023, the firm has attorneys recognized as Titans of the Plaintiffs' Bar by Law360 and as SuperLawyers by Thompson Reuters. Their notable achievements include recovering over $900 million in value from Tesla, Inc. (pending court approval), and $420 million from Teva Pharmaceutical Industries Ltd.

For additional information about BFA and its legal representation, please visit the firm's website.

All advertising here is for informational purposes only and does not guarantee any specific outcomes.

lawsuit, investors, Symbotic