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The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Pareteum Corporation (TEUM)

December 21, 2019 GMT

LOS ANGELES--(BUSINESS WIRE)--Dec 20, 2019--

The Law Offices of Frank R. Cruz (“FRC”) reminds investors of the upcoming December 23, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of Pareteum Corporation (“Pareteum” or the “Company”) (NASDAQ: TEUM) investors who purchased securities between December 14, 2017 and October 21, 2019, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On June 7, 2019, Marcus Aurelius Value published a report questioning the Company’s accounting regarding backlog, backlog conversion rates, and receivables.

On this news, the Company’s stock price fell $0.83, or over 24%, to close at $2.58 per share on June 7, 2019, thereby injuring investors.

Then, on June 25, 2019, Viceroy Research Group published a report that alleged further accounting discrepancies related to several sources of “uncollectable” revenue, concluding that “total revenue is overstated by 42%.”

On this news, the Company’s stock price fell $0.51, or over 20%, to close at $2.00 per share on June 26, 2019, thereby injuring investors further.

Then, on October 15, 2019, the Company announced that Chief Operating Officer Denis McCarthy was leaving the Company. McCarthy had maintained the Company’s 36-month contractual revenue backlog spreadsheets and analysis that were scrutinized by the Aurelius Value and Viceroy reports.

On this news, the Company’s stock price fell $0.36, over three consecutive trading sessions to close at $0.83 per share on October 17, 2019, thereby injuring investors further.

Then, on October 21, 2019, after the market closed, the Company disclosed that certain revenues recognized during 2018 and 2019 should not have been recorded during that period and that, as a result, the Company would restate their previously issued consolidated financial statements as of and for the full year ended December 31, 2018, and interim periods ended March 31, 2019 and June 30, 2019.

On this news, the Company’s stock price fell $0.4401, or nearly 60%, to close at $0.2992 on October 22, 2019, thereby injuring investors further.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased or otherwise acquired Pareteum securities during the Class Period, you may move the Court no later than December 23, 2019 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of FRC, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, at 310-914-5007, by email to fcruz@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191220005599/en/

CONTACT: The Law Offices of Frank R. Cruz, Los Angeles

Frank R. Cruz, 310-914-5007

fcruz@frankcruzlaw.com

www.frankcruzlaw.com

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Law Offices of Frank R. Cruz

Copyright Business Wire 2019.

PUB: 12/20/2019 09:29 PM/DISC: 12/20/2019 09:29 PM

http://www.businesswire.com/news/home/20191220005599/en