NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that an additional class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors that purchased Pareteum Corporation (NASDAQ: TEUM) securities between December 14, 2017 and October 21, 2019 (the “Class Period”). Investors have until December 23, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On December 14, 2017, the Company provided an update to stockholders, highlighting that its "restructuring and repositioning in 2016 has led to solid growth in 2017, and has defined [the Company’s] innovation in both services and market positioning, establishing a strong outlook for our success in 2018 and beyond."
On June 7, 2019, Marcus Aurelius Value published a report questioning the propriety of Pareteum’s accounting and statements about its backlog, backlog conversion rates, and receivables. The report concluded, “[w]e see massive downside potential and believe the stock is completely uninvestible.”
On this news, the Company’s stock price fell $0.83, or over 24%, to close at $2.58 per share on June 7, 2019.
Next, on June 25, 2019, Viceroy Research Group published a report identifying several sources of “uncollectable” revenue presented in Pareteum’s financial results, concluding that "total revenue is overstated by 42%."
On this news, the company’s stock price fell $0.51, or over 20%, to close at $2.00 per share on June 26, 2019.
On October 15, 2019, the company announced the termination of Pareteum’s Chief Operating Officer Denis McCarthy, who reportedly played a central role in disseminating the Company's 36-Month-Contract-Backlog, the metric under intense scrutiny.
On this news, the company’s stock price fell $0.36, over three consecutive trading sessions to close at $0.83 per share on October 17, 2019.
On October 21, 2019, the company disclosed that certain revenues recognized during 2018 and 2019 should not have been recorded during that period and that, as a result, the Company would restate their previously issued consolidated financial statements as of and for the full year ended December 31, 2018, and interim periods ended March 31, 2019 and June 30, 2019.
On this news, the company’s stock price fell $0.4401, or nearly 60%, to close at $0.2992 on October 22, 2019.
If you purchased Pareteum shares during the class period and suffered a loss, or you’re interested in learning more about the class action or your legal rights and remedies, please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
