Quantum Corporation Faces Class Action Over Financial Misstatements, Stock Drops Over 10%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Source: Globenewswire
- Class Action Notice: The Portnoy Law Firm has advised Quantum Corporation investors of a class action for those who purchased securities between November 15, 2024, and August 18, 2025, with a deadline of November 3, 2025, for filing a lead plaintiff motion to protect their legal rights.
- Annual Report Delay: On June 30, 2025, Quantum disclosed to the SEC that it would postpone its annual report due to a review of its revenue recognition accounting practices, resulting in a stock price drop of $1.00, or 10.03%, on July 1, 2025.
- Financial Restatement: On August 8, 2025, Quantum announced to the SEC that its Q3 2024 financials were unreliable and would be restated to reflect a $3.9 million revenue decrease, causing a stock price decline of $0.14, or 1.85%, on August 11, 2025.
- Executive Resignation Impact: Quantum's announcement on August 18, 2025, regarding the resignation of CFO Lewis Moorehead amid an internal accounting review led to a stock price drop of $0.61, or 8.2%, on August 19, 2025, highlighting significant governance risks within the company.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on QMCO
Wall Street analysts forecast QMCO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QMCO is 11.00 USD with a low forecast of 9.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 6.790
Low
9.00
Averages
11.00
High
13.00
Current: 6.790
Low
9.00
Averages
11.00
High
13.00
About QMCO
Quantum Corporation provides solutions for artificial intelligence (AI) and unstructured data. The Company's data platform has allowed customers to extract the maximum value from their unstructured data. From high-performance ingest that powers AI applications and demanding data-intensive workloads, to massive, durable data lakes to fuel AI models, the Company delivers comprehensive solutions. It specializes in solutions for video, images, audio, and other large files. Its portfolio of products includes primary storage software and systems, secondary storage software and systems, as well as devices and media. Its products and services include high-performance platforms, Al-enabled workflow management, data protection and archiving, and services. Its high-performance platforms include Myriad all-flash file and object storage, StorNext file system, and ActiveScale object storage. Its Al-enabled workflow management includes CatDV media asset management and cloud-based analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Quantum Corporation Executives Accused of Breach of Duty
- Financial Reporting Error: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of its financial statements for Q3 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation Initiated: Kuehn Law is investigating whether Quantum executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives involved.
- Improper Disclosure: The failure to timely disclose financial issues has rendered statements regarding the company's business, operations, and prospects materially false and misleading, potentially impacting shareholder decision-making.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact them promptly to safeguard their rights, emphasizing the critical role shareholders play in maintaining market integrity.
Continue Reading
Quantum Corporation Executives Under Investigation for Breach of Fiduciary Duties
- Financial Misrepresentation: Quantum Corporation improperly recognized revenue during the fiscal year ending March 31, 2025, necessitating a restatement of financial statements for the third quarter of 2024, which could undermine investor confidence in the company's financial health.
- Legal Investigation: Kuehn Law, PLLC is investigating whether Quantum's executives breached their fiduciary duties to shareholders, and if substantiated, this could lead to legal repercussions for the executives and damage the company's reputation.
- Improper Disclosure: Statements made by Quantum regarding its business, operations, and prospects have been accused of being materially false and misleading, potentially misguiding shareholders in their future investment decisions.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased QMCO stock before November 15, 2024, to contact the firm to protect their rights, highlighting the importance of shareholder involvement in maintaining market integrity.
Continue Reading