SAN DIEGO & ENGLEWOOD, Colo.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of WideOpenWest, Inc. (NYSE: WOW) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1933 relating to the company's initial public offering ("IPO") in May 2017. WideOpenWest is the sixth largest cable operator in the United States.
View this information on the law firm's Shareholder Rights Blog:
WideOpenWest Accused of Misrepresenting Its Prospects in its Offering Documents
According to the complaint, between May 25 and May 30, 2017, WideOpenWest conducted its IPO, offering 320,970,589 shares priced at $17.00 per share, raising $356 million in gross proceeds. However, the company – who claimed its Chicago fiber project was a driver of future growth for the company – failed to disclose that it was planning to sell this valuable project just months after the IPO. The company also failed to disclose that its customer service and user experience had deteriorated such that WideOpenWest was losing customers and would be forced to invest additional funds to curtail the losses. On March 14, 2018, the company issued its financial results for the fourth quarter and fiscal year 2017, announcing a full year decline in total revenue of approximately 4%, and revealing that WideOpenWest "had not lived up to [its] long-held reputation of providing exceptional customer experiences," and that the company required "investments of between $20 million and $25 million …" In response to these and other disclosures, WideOpenWest's stock plunged more than 23% on March 15, 2018, to close nearly 59% below the IPO price.
WideOpenWest Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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