Mercury Systems, Inc. Investigated by Block & Leviton LLP For Violations of Federal Securities Laws
BOSTON, Oct. 17, 2018 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, is investigating whether Mercury Systems, Inc. ("Mercury" or the "Company") (NASDAQ: MRCY) and certain of its officers and directors violated federal securities laws.
On October 4, 2018, Bloomberg Businessweek published a news investigation chronicling a Chinese spy attack on the US federal government and major American technology companies by adding chips to hardware manufactured in China and sold by Super Micro in the United States. According to the article, "The chips had been inserted during the manufacturing process, [officials say], by operatives from a unit of the People's Liberation Army. In Super Micro, China's spies appear to have found a perfect conduit for what U.S. officials now describe as the most significant supply chain attack known to have been carried out against American companies."
Subsequently, on October 17, 2018, Spruce Point Management ("Spruce Point") published a report stating that it "finds evidence to suggest that Mercury . . . could be one of the companies affected" by the infiltration described in the Bloomberg article, and asserted that Spruce Point "can demonstrate recent actions taken by management to obscure the relationship." Spruce Point noted that Mercury and two of its subsidiaries—Themis Computers and Germane Systems—"each sells servers and other related IT equipment containing [Super Micro] motherboards to the Navy and other military branches" and that all three entities "listed [Super Micro] as a 'technology partner' on their respective websites until last week, when nearly all references to the relationship were abruptly and surreptitiously removed between October 8-9 without explanation." Spruce Point also claims that "[t]he existence of [Super Micro] motherboards in Mercury's rugged servers presents difficult-to-quantify tail risks, but could force product recalls and expensive supply chain adjustments, among other costly actions."
On this news, Mercury stock has dropped more than 8%.
If you have purchased or otherwise acquired MRCY securities and have questions about your legal rights, or possess information relevant to this investigation, you are encouraged to contact attorneys John DeFelice or Jake Walker at (888) 868-2385, by email at [email protected] or [email protected], or by visiting http://shareholder.law/mercury.
Block & Leviton LLP was recently ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nation's largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.
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CONTACT:
BLOCK & LEVITON LLP
John DeFelice
(617) 398-5600 phone
155 Federal Street, Suite 400
Boston, MA 02110
[email protected]
SOURCE Block & Leviton LLP
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