Shareholder rights law firm Robbins LLP announces that a purchaser of Crown Castle International Corp. (NYSE: CCI) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between February 26, 2018 and February 26, 2020. Crown Castle operates and leases more than 40,000 cell towers and more than 75,000 route miles of fiber supporting small cells and fiber solutions.
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Crown Castle International Corp. (CCI) Accused of Misleading Shareholders
According to the complaint, from February 26, 2018 to November 4, 2019, Crown Castle attested to its accuracy of financial reporting, disclosure of its internal control over financial reporting, and disclosure of all fraud in its quarterly and annual reports submitted to the SEC. Beginning in first quarter 2019, Crown Castle touted successive increases in its quarterly net income and increases in adjusted EBITDA, citing "net growth in [its] Towers and Fiber segments." However, on February 26, 2020, Crown Castle revealed that "after consultation with the [SEC's Office of the Chief Accountant], we concluded that our historical practice [for recognizing services revenues] was not acceptable under [Generally Accepted Accounting Principles]." As a result, the Company announced it would restate its financial statements for 2017, 2018, and the first three quarters of 2019, anticipating a decrease of approximately $100 million in net income and adjusted EBITDA for full year 2019 actuals. On this news, the stock price fell $14.38, or almost 9% to close at $148.31 per share.
Crown Castle International Corp. (CCI) Shareholders Have Legal Options
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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