Schall Law Firm filed a class action lawsuit against Quantum Corporation (NASDAQ: QMCO) alleging violations of the Securities Exchange Act of 1934, specifically sections 10(b) and 20(a), and Rule 10b‑5. The complaint accuses Quantum of improperly recognizing revenue during the fiscal year ended March 31 2025, which led the company to restate its prior financial statements.
The lawsuit claims that Quantum’s revenue for the fiscal fourth quarter of 2025 was overstated by approximately $3.9 million, resulting in a net loss adjustment of the same amount. The restatement also affected the company’s reported revenue of $65–$67 million for that quarter, compared with $70.5 million in the fiscal second quarter and $72.6 million in the fiscal third quarter.
Investors who purchased Quantum shares between November 15 2024 and August 18 2025 are eligible to join the class. The complaint seeks damages for losses suffered during that period and requests that Quantum provide a lead plaintiff to represent the class.
Quantum disclosed material weaknesses in its internal control over financial reporting and in its disclosure controls related to revenue recognition as of December 31 2024 and March 31 2025. The company also announced the resignation of its CEO in August 2025 following an internal accounting review.
The lawsuit introduces a significant legal risk for Quantum, potentially affecting its financial statements, investor confidence, and future valuation.
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