KSF News, Updates, & Insights
KSF Appointed Lead Counsel in Pareteum Corporation Securities Litigation
On January 10, 2020, Hon. Alvin K. Hellerstein, United States District Judge for the Southern District of New York, ordered KSF’s appointment as lead counsel for the class in In re Pareteum Securities Litigation, Case No. 1:19-cv-09767-AKH-GWG (S.D.N.Y.). Lead Plaintiff alleges that, throughout the Class Period (December 14, 2017 and October 21, 2019, inclusive), Defendants made materially false and misleading statements and failed to disclose material information, violating federal securities laws. On October 21, 2019, post-market, the Company revealed that it would be restating its financial statements for the full year 2018 and First Quarter and Second Quarter of 2019 because “certain revenues recognized during 2018 and 2019 should not have been recorded during that period,” that the restatements were “expected to impact Revenue, Cost of Service, Operating Income, Net Loss, Accounts Receivable and other Balance Sheet line items” and estimated to reduce revenue for fiscal year 2018 by approximately $9M and the first half of 2019 by approximately $24M. On this news, the price of Pareteum’s shares plummeted over 49%.