NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is reminding investors that class action lawsuits have been filed against Pareteum Corp. (“Pareteum” or the “Company”) (NASDAQ: TEUM), and certain other defendants, related to alleged violations of federal securities laws. If you purchased Pareteum stock between December 14, 2017 and October 21, 2019, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information. The lead plaintiff deadline is December 23, 2019.
Pareteum is a communications cloud services platform. The complaints allege defendants misrepresented Pareteum as a “rapidly growing Cloud Communications Platform company” that was poised for exponential growth, customer wins, a rising “36-month contract revenue backlog,” and effective contract conversion rates, when in truth none of that was true. The complaints further allege that, unbeknownst to investors and contrary to defendants’ statements, Pareteum contracted with either fake entities, related third parties, or companies so small they had no chance of ever satisfying the value defendants assigned to their contracts. In addition, throughout the Class Period, defendants violated Generally Accepted Accounting Principles by prematurely recognizing revenues and inflating accounts receivable.
The truth began to emerge through a series of disclosures occurring between June 7, 2019 and October 21, 2019.
On October 21, 2019, after the market closed, Pareteum announced that it would restate its 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. According to the Company, “[t]he decision to restate these financial statements is based on the Company’s conclusion that certain revenues recognized during 2018 and 2019 should not have been recorded during that period. For certain customer transactions, the Company may have prematurely or inaccurately recognized revenue.”
As a result of these disclosures, the value of Pareteum stock has decreased dramatically, resulting in large investor losses.
What You Can Do
If you purchased Pareteum stock between December 14, 2017 and October 21, 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 at 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.