Flux Power ($FLUX) Investor Settlement
Flux Power has reached a settlement with $FLUX investors over claims that it overstated inventory and profits and failed to disclose weaknesses in its financial controls.
Outline:
Flux Power reported financial results and inventory figures to investors. Investors later alleged the company overstated inventory and profits and failed to disclose weaknesses in its internal controls. In 2024, the company disclosed accounting errors and outdated inventory that required financial restatements. After the stock declined and investors filed suit, Flux Power later agreed to a settlement.
Timeline:
September 5, 2024: Flux Power disclosed $1.2 million in outdated inventory and announced it would restate financials due to ineffective internal controls.
September 5, 2024: $FLUX fell more than 5% following the announcement.
October 1, 2024: After missing deadlines for revised financial statements, $FLUX dropped another 6%.
January 16, 2025: Investors filed a securities class action alleging inflated financial statements and undisclosed control weaknesses.
April 21, 2025: The parties reached a settlement agreement.
Background:
Flux Power Holdings Inc. develops lithium-ion battery systems used in industrial equipment such as forklifts and airport ground support vehicles. The company reported financial results and operational updates to investors regarding its performance and inventory levels.
In September 2024, Flux Power disclosed accounting issues involving approximately $1.2 million in outdated inventory. The company also reported that certain items had been misclassified, which affected reported gross profit and total asset figures.
Flux Power further stated that weaknesses in its internal accounting controls contributed to the errors and that previous financial statements could no longer be relied upon. The company announced plans to restate its financial results.
Following these disclosures and delays in revised filings, $FLUX declined across multiple trading sessions. Investors later filed a securities class action alleging the company had overstated its financial performance and failed to disclose material weaknesses in its financial controls.
What Can Investors Expect Now?
Flux Power agreed to a settlement with $FLUX investors to resolve claims that it misled them about inventory levels, financial reporting, and internal controls.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons or entities who purchased publicly traded Flux Power common stock between November 15, 2021 and February 14, 2025, inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.