NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against GTT Communications, Inc. (“GTT” or the “Company”) (NYSE: GTT), and certain other defendants, related to alleged violations of federal securities laws. If you purchased GTT common stock between February 26, 2018 and July 1, 2019, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information. The lead plaintiff deadline is September 30, 2019.
GTT provides cloud networking services to multinational enterprises. Since 2015, the Company pursued growth through an aggressive roll-up strategy in which it would acquire relatively small companies through “tuck-in” acquisitions. Then, in February 2018, GTT announced the acquisition of Interoute Communications Holdings S.A. (“Interoute”), a telecommunications company that operated Europe’s largest cloud services platform. This was a transformational, $2.3 billion deal that essentially doubled GTT’s size.
The lawsuit alleges that Defendants misled investors by failing to disclose that the integration of Interoute was not progressing as: (1) there were delays in migrating Interoute’s legacy systems and processes into GTT’s client management database system; (2) Interoute had made a strategic priority shift to sell cloud services that deviated from GTT’s core cloud networking business; and (3) Interoute’s sales force was underperforming and ineffective at selling GTT’s core cloud networking services; that was a higher percentage of Interoute’s sales in the two years leading up to the acquisition.
Investors began to learn the truth on May 8, 2019, when GTT disclosed a larger than expected loss for the first quarter of 2019, including a sequential decline in revenues. GTT blamed its poor performance on a host of issues with the Interoute integration.
On this news, GTT’s stock price plummeted 17.5% on May 8, 2019, and continued to fall the following day, for a two-day decline of over 25%. Additional stock drops occurred on May 31, 2019 (5%), June 24, 2019 (12.6%), and July 2, 2019 (2.7%).
What You Can Do
If you purchased GTT stock between February 26, 2018 and July 1, 2019, inclusive, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Rhiana Swartz at (844) 818-6980 or 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.