BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased GTT Communications, Inc. (“GTT” or the “Company”) (NYSE: GTT) common stock between February 26, 2018 and July 1, 2019, inclusive (the “Class Period”). GTT investors have until September 30, 2019 to file a lead plaintiff motion.
Investors suffering losses on their GTT investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On May 8, 2019, the Company reported a larger-than-expected loss and sequential decline in revenue for first quarter 2019. GTT attributed the negative performance to integration issues with Interoute Communications Holdings S.A. (“Interoute”), which the Company had acquired to improve growth of its cloud networking services.
On this news, shares of GTT fell $10.38 per share over two days, or over 25%, to close at $29.91 per share on May 9, 2019, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that there were delays in migrating Interoute’s legacy systems and processes into GTT’s client management database system; (2) that Interoute had made a strategic priority shift to sell cloud services that was a higher percentage of Interoute’s sales in the two years leading up to the acquisition; (3) that a material percentage of the Interoute sales representatives were not productive at selling GTT’s core cloud networking services; (4) that GTT was unable to yield as many Interoute salespeople because Interoute had hired many sales people focused on cloud services and allowed underperforming sales representatives to remain at Interoute; and (5) that as a result of the foregoing, Defendants’ public statements were materially false and/or misleading and/or lacked a reasonable basis.
If you purchased GTT common stock, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.