LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces an expanded class period in the class action lawsuit filed on behalf of a class (the “Class”) of investors who purchased or otherwise acquired Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) (NASDAQ: SNCR) securities between October 28, 2015 and April 26, 2017, inclusive (the “Class Period”). Synchronoss investors have until June 30, 2017 to file a lead plaintiff motion in this class action lawsuit. To obtain information or participate in the class action, please visit the Synchronoss page on our website at www.glancylaw.com/case/synchronoss-technologies-inc.
On April 27, 2017, the Company issued a press release entitled “Synchronoss Announces Management Changes; Company Issues Preliminary First Quarter 2017 Results.” Therein, the Company disclosed that it expected “total revenue for the first quarter of 2017 to be $13 million to $14 million less than the company’s previously announced guidance” and that it expected operating margins of 8% to 10% which was also less than previously announced guidance. The Company stated that it was “disappointed with [its] Q1 performance in this first quarter following our acquisition of Intralinks,” and further disclosed that its Chief Executive Officer, Ronald Hovsepian, and its Chief Financial Officer, John Frederick were leaving the Company. On this news, the Company’s stock price fell $11.33 per share, or 46%, to close at $13.29 per share on April 27, 2017, on unusually heavy trading volume.
According to the complaint filed in this class action lawsuit, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Synchronoss' activation business was sold to an existing vendor, i.e., Sequential, that had previously been owned by several members of Synchronoss' senior management, including Defendant Stephen Waldis; (2) Sequential is owned by Omniglobe, 50% of which is owned by friends and family of Synchronoss; (3) the Chairman and current owner of Sequential is a related party with multiple ties to Synchronoss and Defendant Waldis; (4) Synchronoss and Sequential had a prior and existing relationship; (5) Synchronoss and Sequential entered into a $9.2 million license agreement for the sole purpose of artificially inflating Synchronoss' financials; (6) since 2015, the Company's cloud computing business was struggling, forcing Synchronoss to acquire Intralinks and misrepresent future growth metrics; and (7) as a result of the foregoing, Defendants' statements about Synchronoss' business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
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If you purchased Synchronoss shares during the Class Period, you may move the Court no later than June 30, 2017 to request appointment as lead plaintiff if you meet certain legal requirements. 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 Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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