NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of investors that purchased Sonim Technologies, Inc. (NASDAQ: SONM) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with Sonim’s May 2019 initial public stock offering (the “IPO” or the “Offering”). Investors have until December 6, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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In May 2019, Sonim completed its initial public offering (“IPO”) in which it sold approximately 4.07 million shares at a price of $11.00 per share.
On September 10, 2019, Sonim disclosed that it expected fiscal 2019 net revenues to be flat or slightly below 2018 net revenues of $135.7 million, citing “significant delays” in the launch of new products as well as software issues related to these new introductions. Moreover, the Company disclosed that its CFO James Walker was resigning.
On this news, the company’s share price fell $3.30, or nearly 47%, to close at $3.76 per share on September 10, 2019.
Currently, Sonim stock is trading at $2.87 per share, a 73% decline from the $11 per share IPO price.
The complaint, filed on October 7, 2019, alleges that 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 the company’s XP8 was experiencing material software challenges; (2) that these software issues adversely affected how the device’s Qualcomm chipset, which supported Band 14 access, connected to AT&T’s carrier network configuration; (3) that the company’s XP5 and XP3 devices were experiencing material software defects that adversely affected their optimization with certain accessories; (4) that, as a result, the company was reasonably likely to delay the launch of new products; (5) that, as a result of the foregoing, the company’s financial results would be materially and adversely impacted; and (6) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you purchased Sonim securities pursuant and/or traceable to the registration statement and related prospectus issued in connection with Sonim’s IPO, 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 Brandon Walker or Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Sonim lawsuit, please go to https://bespc.com/sonm. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.