The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Pareteum Corp. (TE...
December 20 2019 - 9:29PM
Business Wire
Shareholders with $100,000 in losses or more are encouraged
to contact the firm
The Law Offices of Frank R. Cruz (“FRC”) reminds investors of
the upcoming December 23, 2019 deadline to file a lead
plaintiff motion in the class action filed on behalf of Pareteum
Corporation (“Pareteum” or the “Company”) (NASDAQ: TEUM) investors
who purchased securities between December 14, 2017 and October
21, 2019, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to
participate.
On June 7, 2019, Marcus Aurelius Value published a report
questioning the Company’s accounting regarding backlog, backlog
conversion rates, and receivables.
On this news, the Company’s stock price fell $0.83, or over 24%,
to close at $2.58 per share on June 7, 2019, thereby injuring
investors.
Then, on June 25, 2019, Viceroy Research Group published a
report that alleged further accounting discrepancies related to
several sources of “uncollectable” revenue, concluding that “total
revenue is overstated by 42%.”
On this news, the Company’s stock price fell $0.51, or over 20%,
to close at $2.00 per share on June 26, 2019, thereby injuring
investors further.
Then, on October 15, 2019, the Company announced that Chief
Operating Officer Denis McCarthy was leaving the Company. McCarthy
had maintained the Company’s 36-month contractual revenue backlog
spreadsheets and analysis that were scrutinized by the Aurelius
Value and Viceroy reports.
On this news, the Company’s stock price fell $0.36, over three
consecutive trading sessions to close at $0.83 per share on October
17, 2019, thereby injuring investors further.
Then, on October 21, 2019, after the market closed, the Company
disclosed that certain revenues recognized during 2018 and 2019
should not have been recorded during that period and that, as a
result, the Company would restate their previously issued
consolidated financial statements as of and for the full year ended
December 31, 2018, and interim periods ended March 31, 2019 and
June 30, 2019.
On this news, the Company’s stock price fell $0.4401, or nearly
60%, to close at $0.2992 on October 22, 2019, thereby injuring
investors further.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired Pareteum securities
during the Class Period, you may move the Court no later than
December 23, 2019 to request appointment as lead plaintiff
in this putative class action lawsuit. To be a member of the Class
you need not take any action at this time; you may retain counsel
of your choice or take no action and remain an absent member of the
Class. If you wish to learn more about this action, or if you have
any questions concerning this announcement or your rights or
interests with respect to these matters, please contact Frank R.
Cruz, of FRC, 1999 Avenue of the Stars, Suite 1100, Los Angeles,
California 90067, at 310-914-5007, by email to
fcruz@frankcruzlaw.com, or visit our website at
www.frankcruzlaw.com. If you inquire by email please include your
mailing address, telephone number, and number of shares
purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20191220005599/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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