SAN FRANCISCO--(BUSINESS WIRE)--
Hagens Berman has filed a class action complaint on behalf of investors in Pareteum Corporation (TEUM). The firm urges TEUM investors who have suffered losses in excess of $100,000 to submit their losses now to learn if they qualify to recover their investment losses.
Class Period: Dec. 26, 2017 - Oct. 21, 2019
Lead Plaintiff Deadline: Dec. 23, 2019
Sign Up Now: www.hbsslaw.com/investor-fraud/TEUM
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Hagens Berman’s TEUM Securities Class Action:
The Complaint is brought on behalf of all investors who purchased or otherwise acquired Pareteum Corporation securities during the Expanded Class Period – between December 26, 2017 and October 21, 2019, inclusive. The Complaint, filed in the United States District Court for the Southern District of New York and captioned Singh v. Pareteum Corporation, et al., (Case No. 1:19-cv-09795), pursues claims against the Defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
According to the detailed Complaint filed by Hagens Berman, Defendants misled investors throughout the Expanded Class Period by materially misrepresenting Pareteum’s true business operations and financial results.
Specifically, the Complaint alleges Defendants misrepresented Pareteum as a “rapidly growing Cloud Communications Platform company” that was poised for exponential growth due to the Company’s involvement in new industries such as block chain, customer wins, a rising “36-month contract revenue backlog,” and effective contract conversion rates when in truth none of that was true.
The Complaint alleges, 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. Moreover, throughout the Expanded Class Period, Defendants violated Generally Accepted Accounting Principles (“GAAP”) by prematurely recognizing revenues and inflating accounts receivable.
The truth emerged through a series of disclosures occurring between June 7, 2019 and October 21, 2019, when the Company announced that it will restate its 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.
As a result of these disclosures, the value of Pareteum stock has consistently decreased, damaging investors.
“We’re focused on recovering investors’ substantial losses and holding Pareteum and its senior management accountable for their outright fraud,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of TEUM and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Lead Plaintiff Process: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Pareteum securities during the Expanded Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Whistleblowers: Persons with non-public information regarding Pareteum 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 510-725-3000 or email TEUM@hbsslaw.com.
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.