Investigation into Adverum Biotechnologies, Inc. (ADVM) by Bronstein, Gewirtz & Grossman, LLC

Adverum recently made public in a filing with the Securities and Exchange Commission on March 31, 2025, that some of its previously released financial statements are no longer accurate. This news has sparked concern among investors and the business community.

The company stated in its regulatory filing that it had identified errors in its financial statements that were released for the years 2023 and 2024. Adverum pointed out that these errors were due to issues with its internal controls over financial reporting. These inaccuracies have prompted the need for Adverum to restate its financial statements and revise its annual reports for those years.

The disclosure by Adverum has raised questions about the reliability of the company’s financial reporting and the effectiveness of its internal controls. Investors rely on accurate financial information to make informed decisions about whether to buy, sell, or hold a company’s stock. Any discrepancies or errors in financial statements can erode investor confidence and have a negative impact on a company’s stock price.

In response to the filing, Adverum’s stock price experienced a significant decline as investors reacted to the news. The company’s shareholders were caught off guard by the disclosure of errors in its financial statements, leading to a loss in market value. This situation highlights the importance of transparency and accuracy in financial reporting for companies to maintain investor trust and market stability.

Adverum’s announcement serves as a reminder of the importance of robust internal controls and oversight in financial reporting processes. Companies must have systems in place to detect and prevent errors in financial statements to ensure the integrity of their financial reporting. Failure to maintain accurate financial records can result in severe consequences, including regulatory scrutiny, investor lawsuits, and reputational damage.

The company’s decision to restate its financial statements indicates a commitment to correcting any inaccuracies and upholding transparency in its reporting practices. Adverum will need to undergo a thorough review of its internal controls to identify and address any weaknesses that may have contributed to the errors in its financial statements. By taking these corrective actions, Adverum aims to regain investor confidence and uphold the trust of its stakeholders.

Overall, Adverum’s disclosure of errors in its financial statements underscores the importance of accuracy and transparency in financial reporting. Investors, regulators, and the business community will be closely monitoring how the company addresses these issues and implements measures to prevent future discrepancies in its financial statements. Maintaining the integrity of financial reporting is essential for companies to build trust with investors and sustain long-term success in the market.