SAN FRANCISCO, March 09, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Crown Castle International Corp. (CCI) who have suffered significant losses to submit their losses now. A securities class action has been filed, establishing court deadlines for certain Crown Castle investors.
Crown Castle International Corp. (CCI) Securities Class Action:
The litigation concerns the propriety of Crown Castle’s accounting policies relating to the Company’s services business.
According to the Complaint, Defendants repeatedly represented that the Company complied with GAAP and affirmed the effectiveness of the Company’s internal control over financial reporting, while concealing that Crown Castle was violating GAAP and its internal control over financial reporting and disclosure controls and procedures was ineffective and materially weak. Specifically, Crown Castle was materially inflating its net income, adjusted EBITDA, and adjusted funds from operations.
The truth emerged, according to the complaint, on Feb. 26, 2020, when the Company admitted it improperly recognized the entirety of the transaction price from its tower installation servicers as revenue upon the completion of the installation services. GAAP mandates that portions of the transaction price – those associated with permanent improvements – be recognized on a ratable basis. As a result, net income in 2019 had been overstated by approximately $100 million, and its previous 2020 outlook for net income would need to be reduced by $90 million. In addition, the Company divulged it would restate its financials for 2016-2018, as well as for Q1 – Q3 2019. Finally, the Company revealed its internal control over financial reporting and disclosure controls and procedures was ineffective as of Dec. 31, 2019.
This news sent the price of Crown Castle shares sharply lower on Feb. 27, 2020.
“We’re focused on investors’ losses and proving Crown Castle intentionally misled investors with its admittedly faulty service business accounting,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Crown Castle and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Crown Castle should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CCI@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895