Maravai LifeSciences Faces Securities Fraud Allegations

2025-04-30 companies

San Diego, Tuesday, 29 April 2025.
Investors sue Maravai LifeSciences over claims of misleading financial information, citing internal control issues that led to a $3.9 million revenue misstatement and a significant stock price drop.

Allegations and Investor Concerns

Investors of Maravai LifeSciences Holdings, Inc. (NASDAQ: MRVI) have filed a securities fraud lawsuit, alleging the company made misleading statements that impacted its stock price. The lawsuit claims that Maravai failed to maintain adequate internal controls over financial reporting, leading to an incorrect recording of $3.9 million in revenue during the second quarter of fiscal year 2024 instead of the third quarter. These discrepancies were revealed when Maravai delayed its fiscal 2024 earnings release on February 25, 2025, causing the stock to plummet nearly 22% to $3.14 per share [1][2][3][4][5].

Impact on Company and Shareholders

The controversy surrounding Maravai has not only eroded investor confidence but also reduced its market valuation significantly. Analysts have responded by downgrading the company’s stock price targets. For instance, Stifel analysts lowered their target from $10.00 to $5.00 following the disappointing financial revelations. This devaluation reflects broader concerns about Maravai’s operational transparency and reliability of its financial disclosures [2][5].

Legal Proceedings and Deadlines

The federal securities class action lawsuit, spearheaded by firms such as Faruqi & Faruqi, LLP, and Kaplan Fox & Kilsheimer LLP, targets Maravai’s allegedly deceptive practices between August 7, 2024, and February 24, 2025. Potential class members must express their intention to join the lawsuit by May 5, 2025, providing them the opportunity to become the lead plaintiff who will oversee the litigation on behalf of all affected investors [1][4][5].

Company’s Response and Future Implications

Maravai LifeSciences has acknowledged the issues with revenue recognition and internal control weaknesses, yet it continues to review the allegations. As of April 29, 2025, the company has not issued a formal response to the lawsuit, stating only that it will defend itself vigorously against the claims. Such legal battles highlight the critical importance of corporate transparency and effective internal controls, both essential for maintaining market trust [1][2][3].

Sources

securities fraud Maravai LifeSciences