LOS ANGELES–(BUSINESS WIRE)–$GTT—Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming September 30, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of GTT Communications, Inc. (“GTT” or the “Company”) (NYSE: GTT) investors who acquired common stock between February 26, 2018 and July 1, 2019, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to [email protected], or visit our website at www.glancylaw.com.
On May 8, 2019, the Company reported a larger-than-expected loss and sequential decline in revenue for first quarter 2019. GTT attributed the negative performance to integration issues with Interoute Communications Holdings S.A. (“Interoute”), which the Company had acquired to improve growth of its cloud networking services.
On this news, shares of GTT fell $10.38 per share over two days, or over 25%, to close at $29.91 per share on May 9, 2019, thereby injuring investors.
Then, on August 27, 2019, the Company announced that its Chief Financial Officer was leaving the Company, effective September 30, 2019.
On this news, shares of GTT fell $0.63, or 7%, to close at $8.36 per share on August 27, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, 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 there were delays in migrating Interoute’s legacy systems and processes into GTT’s client management database system; (2) that Interoute had made a strategic priority shift to sell cloud services that was a higher percentage of Interoute’s sales in the two years leading up to the acquisition; (3) that a material percentage of the Interoute sales representatives were not productive at selling GTT’s core cloud networking services; (4) that GTT was unable to yield as many Interoute salespeople because Interoute had hired many sales people focused on cloud services and allowed underperforming sales representatives to remain at Interoute; and (5) that as a result of the foregoing, Defendants’ public statements were materially false and/or misleading and/or lacked a reasonable basis.
Follow us for updates on Twitter: twitter.com/GPM_LLP.
If you purchased or otherwise acquired GTT shares during the Class Period you may move the Court no later than September 30, 2019 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.