The Law Offices of Frank R. Cruz Files Lawsuit Against Maravai LifeSciences Holdings, Inc.
The Law Offices of Frank R. Cruz have filed a class action lawsuit in the United States District Court for the Southern District of California on behalf of investors who purchased securities of Maravai LifeSciences Holdings, Inc. (NASDAQ: MRVI) between August 7, 2024 and February 24, 2025. The lawsuit (Case No. 25-cv-00499) claims violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, specifically regarding securities fraud.
What Triggered the Lawsuit?
The lawsuit follows a critical announcement from Maravai on February 25, 2025, revealing that it would delay the release of its fiscal 2024 earnings and filing of its annual report (Form 10-K). The company disclosed a material error in its revenue recognition process, affecting its financial statements for fiscal 2024. Maravai found that $3.9 million in revenue was incorrectly recorded in the second quarter of 2024 instead of the third quarter, which it should have been.
Maravai also revealed a material weakness in its internal controls over revenue recognition and required additional time to assess a potential non-cash impairment charge related to its goodwill from its Alphazyme LLC acquisition. Following this announcement, the company’s stock price dropped by 21.7%, closing at $3.14 per share on February 25, 2025, amid heavy trading volume.
Allegations in the Lawsuit
The class action lawsuit alleges that Maravai made false and misleading statements throughout the Class Period, misrepresenting the company’s financial condition and internal controls. Specifically, the lawsuit claims that:
- Maravai lacked adequate internal controls over revenue recognition.
- The company inaccurately reported revenues in fiscal 2024.
- Its goodwill was overstated.
- The company failed to disclose these issues, leading to misleading statements about the company's financial health and future prospects.
Legal Action and How Investors Can Participate
Investors who purchased or acquired Maravai LifeSciences securities during the Class Period (August 7, 2024 – February 24, 2025) are eligible to join the class action lawsuit.
The deadline for investors to move the Court to serve as lead plaintiff is May 5, 2025.
How to Submit a Claim
If you purchased Maravai LifeSciences securities during the Class Period and suffered financial losses, you can submit a claim to potentially recover your losses. To participate or learn more, visit the Law Offices of Frank R. Cruz website for detailed instructions and to connect with legal experts handling the case.
The Importance of Accurate Financial Reporting
This lawsuit highlights the crucial role of accurate financial reporting and the internal controls that publicly traded companies must maintain. Investors rely on companies to provide transparent and truthful financial information to make informed decisions, and when those disclosures are compromised, it can lead to significant financial consequences for both investors and the company.
The Law Offices of Frank R. Cruz is a legal firm specializing in representing individual and institutional investors affected by corporate fraud, breaches of fiduciary duty, and other forms of management and director malfeasance. With nearly two decades of experience in securities class actions, the firm provides expert litigation services for complex cases. What sets the firm apart is its ability to offer personal, one-on-one attention to clients, which larger firms often cannot provide. The firm takes a hands-on approach, guiding clients through the legal process and ensuring they are fully informed throughout. Their global client base spans across the world, and they offer free case evaluations to potential clients.
