NEW YORK, Dec. 10, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against SuperCom Ltd. (“SuperCom” or the “Company”) (Nasdaq:SPCB) and certain of its present and former officers in the United District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased securities between June 1, 2015 and November 27, 2015, inclusive (the “Class Period”). 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 “Exchange Act”).
The Complaint alleges that Defendants failed to disclose that (1) the Company was having difficulty closing certain governmental sales and the revenue associated with those sales would be substantially delayed; (2) the Company’s “pipeline” was neither strong nor “broadening,” and (3) as a result, the Company was not on track to achieve the financial results Defendants had led the market to expect during the Class Period. The Complaint alleges that as a result of Defendants’ false and misleading statements and/or omissions, the Company’s common stock traded at artificially inflated prices during the Class Period, reaching a high of $13.84 per share.
On November 30, 2015, the Company announced that its “financial performance in the third quarter and full-year were impacted by [its] inability to recognize more than $10 million of revenues that were expected this year, mainly due to delays associated with foreign government customers.” On this news, the price of the Company common stock fell more than $3 per share, or 40%, from its close of $7.70 per share on November 27, 2015 to a close of $4.60 per share on November 30, 2015.
If you wish to serve as lead plaintiff, you must move the Court no later than February 8, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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