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NEW YORK, Aug. 20, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in GTT Communications, Inc. (“GTT” or the “Company”) (NYSE: GTT) of the September 30, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in GTT stock or options between February 26, 2018 and July 1, 2019 and would like to discuss your legal rights, click here:www.faruqilaw.com/GTT. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
FARUQI & FARUQI, LLP
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New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia on behalf of all those who purchased GTT securities between February 26, 2018 and July 1, 2019 (the “Class Period”). The case, Plymouth County Retirement System v. GTT Communications, Inc., No. 1:19-cv-00982 was filed on July 30, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by issuing a series of false and/or misleading statements and failing to disclose material adverse facts about GTT’s business, operations, and prospects, and the Interoute acquisition specifically. Among other things, Defendants failed to disclose that: (1) there were delays in migrating Interoute’s legacy systems and processes into GTT’s client management database system; (2) Interoute had made a strategic shift to focus on providing cloud services that deviated from GTT’s core cloud networking business; (3) Interoute’s sales force was underperforming and ineffective at selling GTT’s core cloud networking services; and (4) as a result of the foregoing, Defendants’ public statements were materially false and/or misleading and/or lacked a reasonable basis.
Specifically, on May 8, 2019 GTT disclosed a larger than expected loss for the first quarter of 2019, including a sequential decline in revenues. GTT blamed its poor performance on a host of issues with the Interoute integration, including migrating legacy systems into GTT’s management database, discrepancies with Interoute’s billing systems, and a poor salesforce. GTT further disclosed that shortly before the acquisition, Interoute had made a strategic shift to sell cloud services that deviated from GTT’s core cloud networking business. In response to these disclosures, GTT’s stock price plummeted 17.5% on May 8, 2019, and continued to fall the following day, for a two-day decline of over 25%.
On this news, GTT’s stock price fell from $40.29 on May 7, 2019 to $33.25 on May 8, 2019—a $7.04 or a 17.47% drop. The stock price continued to fall the following day, closing at only $29.91 per share, for a two-day decline of over 25%.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding GTT’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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