Symbotic Inc. Faces Class Action Lawsuit Over Accounting Practices

San Francisco, CA – December 16, 2024 – Symbotic Inc. (NASDAQ: Implementation of automation technology has not been established well in the market by employing SYM as a major automation technology company, has been severely criticized after drastic transformations in the company’s financial statements for the periods ended December 30th, 2023, March 30th, 2024 and June 30th, 2024. The restatements revealed discrepancies such as over-estimated systems revenue, gross profit, and overstated operating and net losses.

Those revelations have led to a securities fraud class action lawsuit against Symbotic for improper revenue recognition to investors. As alleged in the lawsuit, the company rolled forward in revenue recognition to make it look healthier than it is. On November 27, 2024, Symbotic identified these mistakes and attributed unbillable cost overruns that have slashed from $60 million to $80 million in fiscal year 2024 as essential performance indicators.

Worsening investor concerns, the firm reported that it had ineffective internal controls for financial reporting, thus enhancing doubts about its governance and management. To ensure that the manipulations it was involved in were reckless, shareholder rights firm Hagens Berman began a probe. ‘Symbotic’s accounting policies have greatly undermined shareholder confidence as exemplified by the following,’ added Reed Kathrein, the Hagens Berman partner in charge of the case.

The class action lawsuit is filed between Feb 8, 2024, and Nov 26, 2024. The complaint was that the company misled investors and made statements about the financial credibility during this period. The affected investors, therefore, have until February 3, 2025, to move for lead plaintiff status for this case. Hagens Berman says it is looking for shareholders who sustained heavy losses during these years. All submissions are received via the website, which is also available for public use.

Current SEC Whistleblower Program rules allow for award payments of up to 30% of the amount collected for original, independent information about Symbotic’s wrongdoing. 

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