Symbotic Inc.

On November 18, 2024, Symbotic disclosed that it had “determined that it will be required to restate its previously issued unaudited interim financial statements for the first, second and third quarters of fiscal year 2024.” The Company explained the restatement was being made in connection with certain expenses which “resulted in the acceleration of the recognition of cost of revenue.”

Then, on November 27, 2024, Symbotic disclosed that it would be unable to timely file its annual financial report for fiscal year 2024 due to “an error related to system revenue recognition and the impacts of that error on internal controls over financial reporting.”

On this news, Symbotic’s stock price fell $13.14, or 35.8%, to close at $24.00 per share on November 27, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, 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. Specifically, Defendants failed to disclose to investors that: (1) the Company had ineffective internal controls; (2) the company had improperly accelerated its recognition of revenue; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.