Mercury Systems $32.5M Securities Class Action Settlement

Investors who purchased or otherwise acquired Mercury Systems Inc. publicly traded common stock between Feb. 3, 2021, and Feb. 6, 2024, may be eligible to claim a cash payment from a class action settlement.

Mercury Systems agreed to pay $32.5 million to settle a class action lawsuit alleging the company and certain executives made false and misleading statements regarding the integration of acquired businesses and the resulting financial impact, which allegedly inflated the price of Mercury common stock during the class period.

Who can file a claim?

The settlement class includes investors who purchased or otherwise acquired Mercury Systems Inc. common stock between Feb. 3, 2021, and Feb. 6, 2024, inclusive.

Additional details

• Both individuals and entities can be class members.
• The actual beneficial purchaser or acquirer or a legal representative must submit the claim.
• Joint owners must each sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide documentation proving their authority.

How much can class members get?

The total settlement fund is $32,500,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each purchase, sale and holding
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to a court-approved plan of allocation:

• The estimated average recovery before deductions is approximately $0.68 per affected share.
• Recognized loss amounts depend on transaction timing and share status:
• For shares sold before Aug. 3, 2022, the recognized loss amount is $0.
• For shares sold from Aug. 3, 2022, through Feb. 6, 2024, the recognized loss amount equals the lesser of the decline in inflation during the holding period or the purchase price minus the sale price.
• For shares sold from Feb. 7, 2024, through May 6, 2024, the recognized loss amount equals the lesser of the decline in inflation during the holding period, the purchase price minus the sale price or the purchase price minus the applicable post-disclosure average closing price.
• For shares held as of the close of trading on May 6, 2024, the recognized loss amount equals the lesser of the decline in inflation during the holding period or the purchase price minus $28.83.

• If the calculation results in a negative number, the settlement administrator will set the recognized loss to zero.
• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Claimants whose calculated payment would be less than $10 will not receive a payout.

How to claim a Mercury securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The deadline to file a claim is April 8, 2026.

Settlement administrator's mailing address: Mercury Securities Settlement, Claims Administrator, c/o Verita Global, P.O. Box 301171, Los Angeles, CA 90030-1171

Required proof and claim information

All class members must provide the last four digits of their Social Security number or their full taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Trade dates
• Number of shares purchased, acquired or sold
• Total purchase or sale price

Claimants must provide documentation supporting their holdings and transactions in Mercury common stock. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing transactional and holding information

Payout options

• Physical check
• Electronic payment

$32.5 million settlement fund

The $32,500,000 settlement fund includes:

• Settlement administration costs: Amount not specified
• Attorneys’ fees: Up to $9,750,000
• Attorneys’ expenses: Up to $425,000
• Service awards to class representatives: Up to $36,000 total
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to file a claim: April 8, 2026
• Opt-out deadline: April 21, 2026
• Fairness hearing: May 12, 2026

When is the Mercury securities settlement payout date?

The settlement administrator will issue payments to eligible class members after the court grants final approval of the settlement and resolves any appeals.

Why is there a class action settlement?

The class action lawsuit alleged Mercury Systems and certain executives made false or misleading statements regarding the integration of acquired businesses and the related financial impact, which allegedly caused investors to purchase Mercury common stock at artificially inflated prices.

Mercury Systems and the named defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the risks, costs and delays of further litigation.

Sources

1. Class notice
2. Settlement FAQ
3. Claim form