RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that an investor securities fraud class action lawsuit has been filed against Gogo Inc. (Nasdaq: GOGO) (“Gogo”) on behalf of purchasers of Gogo publicly traded securities between February 27, 2017 and May 7, 2018, inclusive (the “Class Period”).
Gogo investors who purchased securities during the Class Period may, no later than August 27, 2018, seek to be appointed as a lead plaintiff representative of the class.
Investors who wish to discuss this securities fraud class action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or Adrienne Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/gogo-inc#join.
Gogo, through its subsidiaries, provides inflight broadband connectivity and wireless entertainment services to the aviation industry in the United States and internationally. Gogo’s 2Ku system is an antenna and satellite-based system which provides additional bandwidth and improved speeds for wi-fi on airplanes.
The Class Period commences on February 27, 2017, when Gogo filed an annual report on Form 10-K for the fiscal year ended December 31, 2016 with the SEC, which provided the company’s annual financial results and position.
On May 4, 2018, Gogo held a conference call. On the call, Gogo’s CEO, Oakleigh Thorne, addressed the de-icing issues and the 2Ku installation, stating in relevant part, “The major cause with deicing fluid getting into the antenna raceways in which the antenna discs spin. We’ve done a thorough analysis of root causes and discovered that while deicing was the biggest issue there are also some manufacturing issues and software issues at fall. We also discovered the deicing fluid entered the antenna ray down through far more pathways than we originally thought. We fixed the software issues and we fixed the manufacturing issues.”
Also, on May 4, 2018, Gogo issued a press release entitled “Gogo Announces First Quarter 2018 Financial Results.” The press release disclosed that Gogo had to restate some of its guidance for 2018. Following this news, the company’s shares fell $1.73 per share or over 18% over the next two trading days to close at $7.86 per share on May 7, 2018.
Finally, on May 7, 2018, after the market closed, Moody’s downgraded Gogo’s credit rating. Following this news, the company’s shares fell $2.80 per share or over 35.6% to close at $5.06 per share on May 8, 2018.
The complaint alleges that during the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Gogo’s 2Ku antenna had more reliability issues than the public was led to believe; (2) Gogo’s 2Ku antennas required costly installation and remediation challenges or required replacement due to deicing fluids from planes infiltrating the 2Ku system as well as manufacturing and software issues; (3) consequently, Gogo would not be able to meet its previously issued 2018 guidance; and (4) as a result, the company’s financial statements were materially false and misleading at all relevant times.
Gogo investors may, no later than August 27, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.