SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Fusion Connect, Inc. (NASDAQ: FSNN) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between May 11, 2018 and April 2, 2019. Fusion Connect offers domestic and international voice services to telecommunications carriers worldwide.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/fusion-connect-jun-19/
Fusion Connect Overstated Earnings
According to the complaint, in May 2018, Fusion Connect acquired the cloud and business services company Birch Communications Holdings, Inc. In April 2019, Fusion Connect revealed that its previous financial statements should no longer be relied upon and that it was unable to file its 2018 Form 10K on time due to accounting errors. Specifically, Fusion Connect acknowledged that the process used by certain of Birch's subsidiaries for capitalizing costs associated with the customer on-boarding process and the related judgments and estimates were not designed with sufficient precision. As a result, Fusion Connect overstated its earnings between $1.7 million and $4.1 million. On this news, Fusion Connect shares dropped over 80% to close at $0.22 per share on April 3, 2019. The stock currently trades at just $0.05.
Fusion Connect Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, email@example.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. Check out Stock Watch, our free investment monitoring program for shareholders.
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