Symbotic Inc. (NASDAQ: SYM): Symbotic Inc. (“Symbotic” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws.  The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Symbotic securities.  The case is pending in the U.S. District Court for the District of Massachusetts and is captioned Decker v. Symbotic Inc., et al., No. 24-cv-12976.
 
If you incurred losses on your investments in Symbotic, you are encouraged to submit your information.
 
Why was Symbotic Sued for Securities Fraud?
 
Symbotic Inc. develops and operates robotics systems to automate and optimize warehouse and supply chain operations for major retailers and distributors.  During the relevant period, the company represented that its financial statements were accurate and that its internal controls over financial reporting were effective.
 
The Stock Declines as the Truth is Revealed
 
In contrast with these representations, on November 27, 2024, Symbotic announced a delay in filing its Form 10-K for its fiscal year 2024 due to identified errors in revenue recognition and announced material weaknesses in its internal controls over financial reporting.  Symbotic revealed that it discovered issues related to premature expense recognition and unbillable cost overruns, which affected system revenue recognition in multiple quarters of its fiscal year 2024.  The company estimated a $30–$40 million reduction in system revenue, gross profit, and adjusted EBITDA for its fiscal year 2024 and reduced its revenue outlook for the first quarter of fiscal 2025 to $480–$500 million, from $495–$515 million, and adjusted EBITDA of $12–16 million, from $27–$31 million.  This news caused the price of the Company’s stock to decline over 35% during the course of trading on November 27, 2024.

What are my Rights?

If you purchased or otherwise acquired Symbotic securities, you may ask the Court no later than February 3, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice.  To be a member of the Class, you need not take any action at this time.  The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff. 
 
If you incurred losses on your investments in Symbotic, you are encouraged to submit your information to speak with an attorney about your rights.  

You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619

All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
 
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