Fluence Energy (FLNC) Under Scrutiny Again, This Time By SEC – Hagens Berman

/EIN News/ -- SAN FRANCISCO, Aug. 09, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Fluence Energy, Inc. (NASDAQ: FLNC) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

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Investigation into Fluence Energy, Inc. (FLNC):

Fluence Energy is facing increased scrutiny regarding the propriety of its financial reporting after revealing that the Securities and Exchange Commission has opened a formal investigation. The probe was triggered by allegations of accounting irregularities made by activist short seller Blue Orca Capital in February.

In a regulatory filing on August 7, Fluence disclosed that the SEC is seeking information related to its financial reporting and the company’s internal investigation into the claims made by Blue Orca.

On February 22, 2024, Blue Orca Capital’s released an investigative report accusing Fluence of artificially inflating revenue and profits through aggressive accounting tactics, including revenue recognition schemes and selective earnings adjustments. Blue Orca’s report stated, “[i]n our opinion, Fluence’s purported improvement over recent quarters is the product of accounting games that have materially inflated revenue growth and Adj. Gross Margins, which we think helps to explain why Fluence is on its third CFO in just over two years.”

Blue Orca expounded, “we believe that much of Fluence’s sales and earnings growth can be attributed to aggressive revenue pull-forwards and selectively applied earnings adjustments[]” and “[w]e estimate that the Company inflated its LTM sales growth from 58% to over 80% in Q1 FY 2023 simply by rewriting of customer contracts that allowed it to recognize revenue on customers in advance of product installation.” The firm also said that “selective earnings adjustments inflated its incremental Adj. EBITDA by 40% in FY23, and its Adj. Gross Margin from 3.9% to 6.6%.”

Fluence, while not directly addressing the specific accounting allegations, has previously stated that its audit committee conducted an internal investigation, assisted by outside counsel and forensic accountants, in response to the short-seller report. While the company has pledged full cooperation with the SEC's inquiry, it has cautioned that the potential outcome and costs of the investigation are uncertain.

The SEC investigation brings additional uncertainty to Fluence, which has seen its stock price decline sharply following the release of the Blue Orca report. This has prompted prominent shareholder rights firm Hagens Berman to renew its investigation of whether Fluence may have violated U.S. securities laws.

“We’re looking into whether Fluence inaccurately reported its financial performance to investors,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Fluence Energy and have substantial losses submit your losses now »

If you’d like more information about the Fluence Energy case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Fluence Energy should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FLNC@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895