NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, is investigating potential claims against certain officers and directors of Pareteum Corporation (NASDAQ: TEUM).
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On June 7, 2019, Marcus Aurelius Value published a report questioning the credibility of Pareteum's accounting, its statements about its backlog, its backlog conversion rates, and its receivables. The report concluded, "[w]e see massive downside potential and believe the stock is completely uninvestible."
Then, on June 25, 2019, Viceroy Research Group published a report identifying several sources of "uncollectable" revenue in Pareteum's financial results, concluding that "total revenue is overstated by 42%."
Then, on August 26, 2019, Pareteum announced that as a condition of obtaining $2.5 million in financing, the company was forced to issue 750,000 shares to its senior secured creditor, thereby diluting the value of Pareteum’s shares for existing shareholders.
On October 15, 2019, the company announced the termination of Pareteum's Chief Operating Officer Denis McCarthy, who allegedly played a central role in spreading the Company's 36-Month-Contract-Backlog, the metric under intense scrutiny.
On October 21, 2019, the company announced that it will restate its 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.
As a result of these disclosures, the value of Pareteum stock has consistently decreased, closing at $0.73 per share on October 21, 2019.
If you purchased or otherwise acquired Pareteum shares and suffered a loss, or you’re interested in learning more about the investigation or your legal rights and remedies, please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
