NEW YORK, Aug. 14, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. reminds investors that class action lawsuits have been commenced on behalf of stockholders of Ideanomics, Inc. (IDEX), Carbonite, Inc. (CARB), and GTT Communications, Inc. (GTT). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Ideanomics, Inc. (IDEX)
Lead plaintiff Deadline: September 17, 2019
Class Period: May 15, 2017 to November 13, 2018
The complaint, filed on July 19, 2019, 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 that: (i) costs associated with building out Ideanomics’ U.S. infrastructure and hiring its new executive team were negatively impacting the Company’s bottom line performance; (ii) as a result, Ideanomics was highly unlikely to meet its 2018 EBITDA guidance; (iii) Ideanomics’ margins in its oil trading and consumer electronics businesses were too low for those businesses to remain viable; and (iv) as a result, Ideanomics’ public statements were materially false and misleading at all relevant times.
For more information on the Ideanomics class action go to: https://bespc.com/idex
Carbonite, Inc. (CARB)
Class Period: February 7, 2019 to July 25, 2019
Lead Plaintiff Deadline: September 30, 2019
The complaint, filed on August 1, 2019, alleges that throughout the Class Period defendants issued materially false and misleading statements regarding the technological quality of the Server Backup VM Edition and its potential to add “meaningfully” to Carbonite’s financial performance for fiscal 2019. Specifically, defendants failed to disclose that: (i) Carbonite’s Server Backup VM Edition was of poor quality and technologically flawed; (ii) Carbonite was receiving poor reviews and complaints from customers about the Server Backup VM Edition; (iii) the poor quality and technological flaws of the Server Backup VM Edition was acting as a “disruptive” factor throughout the Carbonite salesforce and keeping that sales organization from closing opportunistically on several larger deals during fiscal 2019; and (iv) as a result of the foregoing, Carbonite lacked any reasonable basis for issuing its positive projections and financial forecasts.
Finally, on July 25, 2019, Carbonite announced that it was withdrawing its Server Backup VM Edition product from the marketplace and consequently dramatically lowered its financial projections for fiscal 2019 and 2020. That same day, the strongest proponent and supporter of Server Backup VM Edition, Defendant Ali, announced he was leaving Carbonite. On this news, Carbonite stock declined more than 24%, from $23.90 per share when the market closed on July 25, 2019, to $18.01 per share when the market closed on July 26, 2019, on extremely heavy trading volume.
For more information about the Carbonite class action go to: https://bespc.com/CARB.
GTT Communications (GTT)
Class Period: February 26, 2018 to July 1, 2019
Lead Plaintiff Deadline: September 30, 2019
The complaint, filed on July 30, 2019, alleges that throughout the Class Period GTT assured investors that it had conducted extensive due diligence on Interoute, and the acquisition was a natural strategic fit for GTT. GTT stated that the two companies "fit together almost hand in glove." After the deal closed, GTT assured investors that Interoute's integration into the Company was "on track" and "not as complex" as many of the Company's previous integrations. Investors began to learn the truth on May 8, 2019, when GTT disclosed a larger than expected loss for the first quarter of 2019, including a sequential decline in revenues. GTT blamed its poor performance on a host of issues with the Interoute integration, including migrating legacy systems into GTT's management database, discrepancies with Interoute's billing systems, and a poor salesforce. GTT further disclosed that shortly before the acquisition, Interoute had made a strategic shift to sell cloud services that deviated from GTT's core cloud networking business.
In response to these disclosures, GTT's stock price plummeted 17.5% on May 8, 2019, and continued to fall the following day, for a two-day decline of over 25%. The Complaint asserts claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against GTT and certain of its senior executives ("Defendants"). The action alleges that during the Class Period, Defendants issued a series of false and/or misleading statements and failed to disclose material adverse facts about GTT's business, operations, and prospects, and the Interoute acquisition specifically. Among other things, Defendants failed to disclose that: (1) there were delays in migrating Interoute's legacy systems and processes into GTT's client management database system; (2) Interoute had made a strategic shift to focus on providing cloud services that deviated from GTT's core cloud networking business; (3) Interoute's sales force was underperforming and ineffective at selling GTT's core cloud networking services; and (4) as a result of the foregoing, Defendants' public statements were materially false and/or misleading and/or lacked a reasonable basis.
For more information on the GTT class action please go to: https://bespc.com/GTT
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.