SAN FRANCISCO, Dec. 16, 2025 (GLOBE NEWSWIRE) — National shareholder rights law firm Hagens Berman has commenced an investigation into ALT5 Sigma Corporation (NASDAQ: ALTS) following a series of new disclosures that point to a potential crisis of governance and regulatory non-compliance, which led to the stock cratering nearly 80%. The firm urges investors in ALT5 who suffered significant losses to contact the firm now.
The investigation focuses on whether ALT5 misled investors about the stability of its financial reporting and internal controls—specifically in the context of its August 2025 $1.5 billion registered offering. The failure to timely file its Q3 report has now resulted in a Nasdaq Non-Compliance Notice (Dec. 2, 2025), compounding issues that include a subsidiary’s criminal judgment for illicit enrichment and money laundering and management purge.
Read Hagens Berman’s detailed analysis on the alleged ALT5 governance collapse here.
“Among the most concerning developments is the potential discrepancy in the reporting timelines for the auditor resignation and the CEO’s suspension,” said Reed Kathrein, the Hagens Berman partner leading the firm’s proprietary investigation. “Alleged failures to timely disclose these events, coupled with a full management purge and a money laundering conviction of its subsidiary, are suggestive of systemic failure in corporate governance.”
ALT5 Sigma (ALTS) Investigation: Potential Untimely Disclosures of Executive Changes and Auditor Resignation
The investigation’s focus has intensified to include possible violations of federal disclosure rules, potentially providing further red flags of a breakdown of the company’s internal controls immediately following the massive capital raise.
- Potential Auditor Disclosure Discrepancy: Under Form 8-K, Item 4.01, a company must disclose the resignation, dismissal, or refusal of an independent accountant (auditor) to stand for re-appointment within four business days of the event. The “event” is typically triggered when the company receives notice. ALT5 Sigma reported to the SEC that the auditor, William Hudgens, resigned effective November 21, 2025, and it filed the related 8-K shortly thereafter (November 28, 2025). But as reported by Forbes, Hudgens said he informed the company before June 30 that he would step away from auditing public companies and would complete no work beyond the second quarter, which was filed on Aug. 12. If the company received formal notice or confirmation of the auditor’s resignation intention months before the November 21 date—potentially before the end of June 2025—then why did the company wait until the November 28, 2025, 8-K filing to disclose this development?
- Potential CEO Suspension Concealment: Under Form 8-K, Item 5.02(b), if an executive officer (like the CEO) retires, resigns, is terminated, or is placed on leave where they lose their executive functions, the company must disclose this change within four business days. ALT5 Sigma’s official SEC filing stated that CEO Peter Tassiopoulos was suspended effective October 16, 2025. Media reports indicate an internal company email or memo sent to staff stated the CEO was already on “temporary leave” as early as September 4, 2025. If the CEO effectively had truly lost his executive duties on September 4th, then why did the company wait nearly six weeks to disclose this development to investors?
- Complete Governance Collapse: The CEO and CFO have since been terminated, and the Audit Committee Chair resigned effective November 25, 2025, followed by the formal Nasdaq Non-Compliance Notice (Dec. 2, 2025) for the late Q3 filing.
- Criminal Liability and Financial Reporting: The central issue remains the failure to disclose the subsidiary’s money laundering and illicit enrichment judgment against a former principal and the company’s admission that it is reviewing “potential misstatements or omissions in the financial statements of the Company and omissions of material information by certain members of management and personnel of the Company,” which call into question the integrity of the company’s internal controls and adherence to GAAP.
Next Steps: Contact Partner Reed Kathrein Today
Hagens Berman is a leading plaintiff litigation firm recognized for prosecuting complex securities fraud cases. We are uniquely positioned to represent sophisticated investors who require expertise in corporate governance and regulatory violations.
Mr. Kathrein is actively advising investors who purchased ALTS shares and suffered substantial losses due to the company’s potential financial reporting failures and the resulting stock crash.
We urge investors to contact the firm immediately as this is an active investigation.
TO SUBMIT YOUR ALT5 (ALTS) INVESTMENT LOSSES NOW, PLEASE USE THE SECURE FORM BELOW:
For information on the investigation, visit: https://www.hbsslaw.com/cases/alt5-sigma-corporation-alts-investigation
Whistleblowers: Persons with non-public information regarding ALT5 should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
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