Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Southern District of New York on behalf of shareholders of Pareteum Corporation who purchased shares between December 14, 2017 and October 21, 2019.
Pareteum, formerly known as Elephant Talk Communications Corp., operates a communications cloud services platform in Europe and internationally.
On December 14, 2017, the Company provided an update to shareholders, highlighting that its “restructuring and repositioning in 2016 has led to solid growth in 2017, and has defined our innovation in both services and market positioning, establishing a strong outlook for our success in 2018 and beyond.”
Following a series of positive statements by the Company throughout the class period touting its financial performance and outlook, on March 18, 2019, Pareteum disclosed a material weakness in its internal control over financial reporting and that disclosure controls and procedures were not effective as of December 31, 2018; however, it assured investors that measures had been implemented to remediate the material weakness.
Then, on October 21, 2019, the Company revealed that it would “restate its 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” which decision was “based on the Company’s conclusion that certain revenues recognized during 2018 and 2019 should not have been recorded during that period…[because] the Company may have prematurely or inaccurately recognized revenue.”
Following this news, the price of Pareteum tumbled in after-market trading, closing at $0.73/share on October 21, 2019 and opening at $0.37/share on October 22, 2019.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until December 23, 2019 to request that the court appoint them lead plaintiff.