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MRVI.US
id: 1515
Maravai LifeSciences (MRVI) Revenue Recognition and Internal Controls Misrepresentation Case
S.D. California
Court 3:25-cv-00499
Case number08/07/2024
Class period Start02/24/2025
Class period End05/05/2025
Lead Plaintiff motion deadline- $MRVI investors filed a lawsuit against Maravai LifeSciences, alleging the company misled shareholders about its revenue recognition practices and the effectiveness of its internal controls.
- On February 25, 2025, Maravai postponed its earnings release, disclosing a material weakness in revenue recognition. Following this news, $MRVI dropped 21.7%.
Case Details:
Between August 7, 2024, and February 24, 2025, Maravai repeatedly assured investors that its financial reporting and revenue recognition processes were accurate and that the company had effective internal controls in place. The company also reaffirmed its 2024 revenue guidance multiple times, reinforcing confidence in its financial stability.
However, Maravai failed to disclose critical weaknesses in its internal controls. The company improperly recorded $3.9 million in revenue in Q2 2024 that should have been recognized in Q3 2024, inflating reported earnings. Additionally, Maravai overstated goodwill related to its Alphazyme LLC acquisition, creating further financial misstatements.
On February 25, 2025, Maravai delayed its earnings report and disclosed a material weakness in its revenue recognition controls. The company also warned that it needed additional time to assess a potential goodwill impairment charge. These admissions contradicted Maravai’s previous assurances about its financial reporting integrity.
Following this announcement, $MRVI stock dropped 21.7%
Based on these events, $MRVI investors filed a lawsuit against Maravai LifeSciences, claiming the company:
- It misled investors about the accuracy of its revenue recognition and internal controls.
- It overstated goodwill and failed to disclose financial reporting weaknesses.
Investors believe Maravai misrepresented its financial stability.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/25/2025
Filing date
03/03/2025
Lead Plaintiff Deadline
05/05/2025