Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors that purchased ADTRAN, Inc. (NASDAQ: ADTN) securities between February 28, 2019 and October 9, 2019 (the "Class Period"). Investors have until December 16, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On July 17, 2019, ADTRAN announced "preliminary" earnings for second quarter 2019 due to its ongoing assessment of its current and previously reported excess and obsolete inventory reserves ("E&O reserves").
On this news, the company's share price fell $3.69 per share, or over 23%, to close at $12.13 per share on July 18, 2019.
Then, on October 9, 2019, the company announced that its "revenue this quarter has been significantly impacted by a pause in shipments to a Tier 1 customer in Latin America and the continued slowdown in the spending at an international Tier 1 customer."
On this news, the company's share price fell $2.10 per share, or over 19%, to close at $8.81 per share on October 10, 2019.
The complaint, filed October 17, 2019, alleges that throughout the Class Period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company's business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that there were material weaknesses in the company's internal control over financial reporting; (2) that, as a result, certain E&O reserves had been improperly reported; (3) that, as a result, the company's financial results for certain periods were misstated; (4) that there would be a pause in shipments to the company's Latin American customer; and (5) that, as a result of the foregoing, defendants' positive statements about the company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you purchased ADTRAN securities during the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the ADTRAN lawsuit, please go to https://bespc.com/adtn. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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SOURCE: Bragar Eagel & Squire, P.C.
Bragar Eagel & Squire, P.C. Brandon Walker, Esq. Melissa Fortunato, Esq. (212) 355-4648 firstname.lastname@example.org www.bespc.com