NEW YORK, May 16, 2018 /PRNewswire/ -- Attorney Advertising-- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Synacor, Inc. ("Synacor" or the "Company") (SYNC) and certain of its officers, on behalf of shareholders who purchased or otherwise Synacor securities between May 4, 2016 and March 15, 2018, both dates inclusive. Such investors are encouraged to join this case by visiting the firm's site: http://www.bgandg.com/sync.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that: (1) Synacor was unlikely to receive significant revenues from the AT&T Contract until 2018; (2) as such, the Company's revenue forecasts issued during the Class Period were materially false and misleading; and (3) as a result of the foregoing, Synacor shares traded at artificially inflated prices during the Class Period.
On August 9, 2017, post-market, Synacor issued a press release entitled "Synacor Exceeds Second-Quarter 2017 Financial Guidance; Remains on Path to '3/30/300,'" announcing its financial results for the quarter ended June 30, 2017. The press release stated in relevant part: "[T]he joint AT&T-Synacor team has made the strategic decision to prioritize portal engagement right now over monetization. We are seeing the results of this focus in deeper engagement metrics. We are already generating revenue from this new consumer experience, but we expect that additional monetization tactics will be turned on at a more deliberate pace, which will result in a longer ramp to full monetization. As a result, a significant portion of the revenue that we were expecting in Q3 and Q4 this year is delayed to 2018, and we are adjusting our financial guidance for 2017 accordingly. We believe that this engagement-focused strategy ultimately leads to a stronger, more sustainable business," concluded Bhise. On this news, Synacor's share price fell $1.15, or 32.39%, to close at $2.40 on August 10, 2017.
On March 15, 2018, post-market, Synacor held a conference call with analysts and investors to discuss the Company's fourth-quarter earnings. During the call, Defendant Bhise discussed the shortcomings of the AT&T contract. On this news, Synacor's share price fell $0.30, or 14.63%, to close at $1.75 on March 16, 2018.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/sync or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Synacor you have until June 4, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
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