SAN DIEGO & LITTLE ROCK, Ark.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that another purchaser of Uniti Group Inc. (NASDAQ: UNIT) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between April 20, 2015 and February 15, 2019. Uniti Group is an internally managed real estate investment trust specialized in the acquisition and construction of essential-to-survival infrastructure in the communications industry. Uniti Group changed its name from Communications Sales & Leasing, Inc. in February 2017.
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Uniti Group Inc. (UNIT) Accused of Misleading Shareholders
According to the complaint, in March 2015, Uniti spun off from Windstream Holdings, Inc. Simultaneously, Windstream became Uniti's main customer. However, when Uniti began publicly trading in April 2015, the Company failed to disclose in its information statement that its financial results were not sustainable because Windstream had defaulted on its unsecured notes. Then, on September 21, 2017, the hedge fund Aurelius Capital Master, Ltd., an owner of more than 25% of Windstream's unsecured notes, served a notice to Windstream that the spin-off of Uniti constituted a sale and leaseback in breach of the notes' indenture. As a result, on February 15, 2019, United States District Judge Jesse M. Furman ruled that the 2015 Windstream breached the indenture and awarded Aurelius a monetary judgment in the amount of $310,459,959.10 plus interest. On this news, Uniti's share price fell $10.75, or almost 54%, over the course of the next three trading days to close at $9.23. The stock continues decline and currently trades at around $7.00.
Uniti Group Inc. (UNIT) Shareholders Have Legal Options
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