Symbotic (SYM) Restates Financials Amid Accounting Scrutiny

SAN FRANCISCO, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Symbotic Inc. SYM, an automation technology company located in Wilmington, Massachusetts, has recently filed restated financial statements for three quarters of fiscal year 2024. These restatements uncover major mistakes in the company’s earlier reported revenue and profit figures.

The disclosures were made on December 4, 2024, following the identification of significant accounting errors revealed in the previous month. This issue has led to legal trouble for Symbotic as it now faces a class action lawsuit for securities fraud.

Class Action Lawsuit Overview

The financial restatements cover the quarters ending December 30, 2023, March 30, 2024, and June 30, 2024. They indicate that Symbotic had significantly overstated its systems revenue and gross profit while underreporting both operating and net losses. These changes present a very different perspective on the company's financial health during these periods.

On November 27, Symbotic disclosed that it had found inaccuracies in its revenue reporting linked to unbillable cost overruns, affecting all quarters of fiscal year 2024. The estimated total impact is a decrease of $30 to $40 million in system revenue, along with adjustments to several other critical financial metrics.

This issue has led to increased attention on Symbotic’s accounting practices. The ongoing securities fraud class action lawsuit claims that the company misled investors by prematurely recognizing revenue in its 2024 financial reports, resulting in an inflated portrayal of its financial performance. The lawsuit argues that Symbotic’s claims regarding the reliability of its financial reports hid these improper actions.

Concerns among investors have grown as Symbotic acknowledged weaknesses in its internal controls related to financial reporting. This admission casts doubt on the effectiveness of the company’s oversight and its ability to accurately report its financial figures.

Hagens Berman, a leading law firm representing shareholders, has initiated an investigation into these claims. The firm is exploring whether the accounting errors were deliberate acts to manipulate Symbotic's financial reporting and artificially raise its stock price.

“Symbotic’s substantial alterations to its financials raise significant questions about the correctness of its accounting practices,” stated Reed Kathrein, the partner leading the investigation at Hagens Berman.

If you invested in Symbotic and have incurred substantial losses, or if you have information that could support the investigation, you are encouraged to report your losses now.

For those interested in learning more about the Symbotic case and the ongoing investigation, further details are available.

Whistleblower Information

Individuals in possession of non-public information regarding Symbotic should consider their options for assisting the investigation or participating in the SEC Whistleblower program. Under this program, whistleblowers who offer original information may be eligible for rewards of up to 30 percent of any successful recovery made by the SEC. For more details, contact Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman

Hagens Berman is a global litigation firm dedicated to protecting the rights of plaintiffs, focusing on corporate responsibility. The firm has built a strong practice representing investors, whistleblowers, employees, consumers, and others impacted by corporate negligence. Hagens Berman has successfully secured over $2.9 billion in various cases. More details and updates on the firm can be found on their website.

financials, lawsuit, accounting