SAN DIEGO & CHICAGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP reminds shareholders that purchasers of Gogo Inc. (NasdaqGS: GOGO) filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 27, 2017 and May 7, 2018. Gogo provides inflight broadband connectivity and wireless entertainment services to the aviation industry. Gogo’s 2Ku system is an antenna and satellite-based system that provides improved speeds for wi-fi on airplanes.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/gogo-inc-nov-2018/
Gogo Accused of Downplaying Problems with Its Antennas
According to the complaint, Gogo's 2Ku antenna suffered from manufacturing, software, and reliability issues due to de-icing fluids from planes infiltrating the 2Ku system. As a result of the many problems with the 2Ku antenna, Gogo was unable to meet its previously issued 2018 guidance. On May 4, 2018, Gogo discussed the financial impact of the de-icing issues, revealing that it anticipated adjusted EBITDA to be lower than expected due to increased costs and lost revenue related to the 2Ku implementation challenges. Then, on May 7, 2018, Moody's downgraded Gogo's credit rating, citing Gogo's weak operating performance. Since Gogo's troubles were made public, Gogo's stock fell 41% to close at $4.86 per share on June 29, 2018, and has yet to recover its value.
Gogo Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can 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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