Company announces an accounting restatement
Class Period has been extended and Lead Plaintiff Deadline is June 30, 2017
NEW YORK, June 15, 2017 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in United States District Court for the District of New Jersey on behalf of all persons or entities that purchased Synchronoss Technologies, Inc. ("Synchronoss" or the "Company") (NASDAQ:SNCR) securities. The new expanded class period is between October 28, 2015 and April 27, 2017, inclusive (the "Class Period").
Investors who have incurred losses in shares of Synchronoss Technologies, Inc. are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you suffered a significant loss in Synchronoss Technologies, Inc. shares and would like to assist with the litigation process as a lead plaintiff, you may, no later than June 30, 2017, request that the Court appoint you lead plaintiff of the proposed class.
The filed complaint alleges that Synchronoss and certain of its senior executive officers made a series of materially false and misleading statements and/or failed to disclose material adverse facts about the Company's business, operations and prospects to investors during the Class Period.
Specifically, the defendants are alleged to have misrepresented and/or failed to disclose that:
- Synchronoss would not be able to meet revenue guidance provided to investors; and
- Synchronoss would need to revise its prior guidance.
As a result of the foregoing, the defendants' Class Period statements were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On April 27, 2017, Synchronoss reported preliminary First Quarter Fiscal 2017 financial guidance and disclosed that, "[i]n view of the Company's performance in the first quarter, we expect that this will impact our full year guidance." The Company also disclosed that its Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") would each be "leaving to pursue other interests."
Following this news, shares of Synchronoss' stock declined $11.33 per share, or over 46 percent, to close on April 27, 2017 at $13.29 per share.
On June 13, 2017, after the close of trading, the Company announced in a Securities and Exchange Commission (SEC) 8-K filing that they would be restating financial statements for 2015 and 2016:
In a regulatory filing last night, Synchronoss disclosed that the Audit Committee of the company's board, after consultation with management and discussion with the company's independent registered public accounting firm Ernst & Young, concluded that the company's previously issued financial statements for the fiscal years ended December 31, 2016 and 2015 and the respective quarterly periods should be restated and should no longer be relied upon. The company has concluded to restate its financial statements for the relevant periods to correct the above identified accounting errors and certain other immaterial prior period errors. The company does not expect the corrections to have an impact on total cash flows for the relevant periods, to result in any customer refunds or to impact the company's services to its customers. "The company and its advisors are working expeditiously to complete this review and the company intends to file its Form 10-Q for the quarter ended March 31, 2017 and restated financial statements for the Relevant Periods as soon as practicable. The company has identified a material weakness in internal control over financial reporting relating to its revenue recognition process at December 31, 2016. It is possible the company may identify additional material weaknesses," Synchronoss stated.
On June 14, 2017, Synchronoss stock closed at $11.26, down $0.87, a further decline of 7.2%.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
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