NEW YORK, Aug. 15, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Minnesota on behalf of all persons or entities who purchased or otherwise acquired Symbotic Inc. (“SYM” or the “Company”) (NASDAQ: SYM) securities between May 6, 2024 and July 29, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint in the lawsuit alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. The Complaint alleges that Defendants created the false impression that they possessed reliable information pertaining to the Company’s projected earnings outlook and anticipated growth while also minimizing risk from seasonality and macroeconomic fluctuations. The Complaint further alleges that in truth, SYM’s optimistic reports of growth, improvements to gross margin, and overall stability of its ongoing projects fell short of reality; the Company was not equipped to timely deploy their systems or otherwise appropriately manage its expenses through project delays.
The Complaint also alleges that on July 29, 2024, Defendants released their Q3FY24 results below margin expectations and provided lower-than-expected Q4FY24. The Complaint alleges that SYM hosted an earnings call the same day which again included Defendants Cohenand Hibbard. According to the Complaint, during the call, CEO Cohen highlighted the miss on gross margin expectations, stating, in pertinent part: “Our third quarter reflects record revenue growth, strong recurring revenue gross margin, and careful management of operating expenses. However, our system gross margin reflects elongated construction schedules and implementation costs associated with last quarter’s rapid pace of innovation.”
The Complaint further alleges that CFO Hibbard spoke in accord, pertinently stating, “system gross margin fell below expectations due to schedule growth and higher labor costs during the quarter. We are focused on improving our planning, speed of implementation, and project management to enhance performance of the business.”
According to the Complaint the aforementioned press releases and statements made by the Individual Defendants are in direct contrast to statements they made during the May 6 earnings call and the subsequent May 9 investor/analyst day presentation. The Complaint alleges that on those calls, Defendants projected an outlook reflecting stable gross margins, highlighted their efforts to decrease costs related to slow deployment times, and claimed to put forth efforts to accelerate deployment cycles, while also continually minimizing risks associated with seasonality and the potential impact of the macro environment on the Company’s future profitability.
The Complaint alleges that the price of SYM’s common stock declined dramatically. The Complaint further alleges that from a closing market price of $35.63 per share on July 29, 2024, SYM’s stock price fell to $27.25 per share on July 30, 2024, a decline of about 23.52% in the span of just a single day.
Investors who purchased or otherwise acquired shares of SYM should contact the Firm prior to the October 15, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
