RADNOR, Pa.--(BUSINESS WIRE)--Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Switch, Inc. (NYSE: SWCH) (“Switch” or the “Company”) on behalf of investors who purchased the Company’s common stock pursuant and/or traceable to Switch’s initial public offering (“IPO”) on or about October 6, 2017.
The shareholder class action complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) Switch’s Grand Rapids and Atlanta facilities would never be as profitable as its Las Vegas facility, diminishing the yield on Switch’s recent capital expenditures acquiring and building out those facilities will bear; (2) Switch’s high capital expenditures to create high redundancy levels at its facilities were not as profitable as they once had been in the past; (3) Switch had already spent an additional more than $64 million on unbudgeted capital expenditures during the third quarter of 2017 that was not disclosed to investors until after the IPO; (4) Switch recognized $9.4 million in revenues during FY17 that it would not provide colocation services for until FY18, meaning its reported FY17 revenue growth and its FY18 revenue prospects were both overstated; (5) eBay, Switch’s largest colocation customer, would not be taking possession of colocation space it had reserved at Switch’s Tahoe/Reno facility in early 2018; and (6) at the time of the IPO, Switch’s business and financial prospects were not what defendants had led the market to believe they were in the Registration Statement. The complaint further alleges that, as a result of the foregoing, investors purchased Switch’s common stock at artificially inflated prices and suffered significant investment losses.
IMPORTANT DEADLINE: Investors who purchased Switch common stock may, no later than August 10, 2018, seek to be appointed as a lead plaintiff representative of the investor class.
Switch investors have important legal options and are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585 or (888) 715 – 1740 to discuss those options and their legal rights. Switch investors may also visit www.kaskelalaw.com/case/switch for additional information about this action or to submit their information for review.