NEW YORK, Aug. 02, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia on behalf of all investors that purchased GTT Communications, Inc. (NYSE: GTT) securities between February 26, 2018 and July 1, 2019 (the “Class Period”). Investors have until September 30, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
The complaint, filed on July 30, 2019, alleges that throughout the Class Period GTT assured investors that it had conducted extensive due diligence on Interoute, and the acquisition was a natural strategic fit for GTT. GTT stated that the two companies "fit together almost hand in glove." After the deal closed, GTT assured investors that Interoute's integration into the Company was "on track" and "not as complex" as many of the Company's previous integrations. Investors began to learn the truth on May 8, 2019, when GTT disclosed a larger than expected loss for the first quarter of 2019, including a sequential decline in revenues. GTT blamed its poor performance on a host of issues with the Interoute integration, including migrating legacy systems into GTT's management database, discrepancies with Interoute's billing systems, and a poor salesforce. GTT further disclosed that shortly before the acquisition, Interoute had made a strategic shift to sell cloud services that deviated from GTT's core cloud networking business.
In response to these disclosures, GTT's stock price plummeted 17.5% on May 8, 2019, and continued to fall the following day, for a two-day decline of over 25%. The Complaint asserts claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against GTT and certain of its senior executives ("Defendants"). The action alleges that during the Class Period, Defendants issued a series of false and/or misleading statements and failed to disclose material adverse facts about GTT's business, operations, and prospects, and the Interoute acquisition specifically. Among other things, Defendants failed to disclose that: (1) there were delays in migrating Interoute's legacy systems and processes into GTT's client management database system; (2) Interoute had made a strategic shift to focus on providing cloud services that deviated from GTT's core cloud networking business; (3) Interoute's sales force was underperforming and ineffective at selling GTT's core cloud networking services; and (4) as a result of the foregoing, Defendants' public statements were materially false and/or misleading and/or lacked a reasonable basis.
If you purchased GTT shares during the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the GTT class action please go to https://bespc.com/GTT. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com