NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, reminds investors that a class action lawsuit has been filed against Switch, Inc. (NYSE: SWCH) (“Switch” or the “Company”) and other defendants, related to alleged violations of federal securities laws. If you purchased Switch stock in or after Switch’s Initial Public Offering (“IPO”), commenced on or around October 6, 2017, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for additional information. Investors have until August 10, 2018, to move for lead plaintiff.
Switch designs, constructs, operates, and manages data centers.
According to the lawsuit, defendants made false and/or misleading statements regarding: (1) Switch’s Grand Rapids and Atlanta facilities, and relatedly the yield on Switch’s capital expenditures acquiring and building out those facilities; (2) Switch’s high capital expenditures to create high redundancy levels at its facilities were not as profitable as they had been in the past, including that Switch had already spent an additional more than $64 million on unbudgeted capital expenditures during the third quarter of 2017; (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 overstated; (5) eBay, Switch’s largest colocation customer, would not be taking possession of colocation space it had reserved; and (6) as a result of the foregoing, 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 close price of Switch common stock on the date the case was filed, June 11, 2018, was $12.96, more than 23% below the IPO price of $17 per share.
What You Can Do
If you purchased Switch stock in or after October 2017, or if you have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980, or at firstname.lastname@example.org.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.