ADTRAN SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In ADTRAN, Inc. To Contact The Firm
NEW YORK, NY - ( NewMediaWire ) - October 23, 2019 - Faruqi Faruqi, LLP, a leading national securities law firm, reminds investors in ADTRAN, Inc. (“ADTRAN” or the “Company”) (NASDAQ:ADTN) of the December 16, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in ADTRAN stock or options between February 28, 2019 and October 9, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/ADTN. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased ADTRAN securities between February 28, 2019 and October 9, 2019 (the “Class Period”). The case, Burbridge v. ADTRAN, Inc. et al., No. 19-cv-09619 was filed on October 17, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that there were material weaknesses in the Company’s internal control over financial reporting; (2) that, as a result, certain EO reserves had been improperly reported; (3) that, as a result, the Company’s financial results for certain periods were misstated; (4) that there would be a pause in shipments to the Company’s Latin American customer; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On July 17, 2019 the Company announced “preliminary” earnings for second quarter 2019 due to its ongoing assessment of the reasonableness of its current and previously reported excess and obsolete inventory reserves.
On this news, the Company’s stock price fell from $15.82 per share on July 17, 2019 to $12.13 per share on July 18, 2019: a $3.69 or 23.32% drop.
Then, on October 9, 2019, after-market, the Company announced that its “revenue this quarter has been significantly impacted by a pause in shipments to a Tier 1 customer in Latin America and the continued slowdown in the spending at an international Tier 1 customer.”
On this news, the Company’s stock price fell from $10.91 per share on October 9, 2019 to $8.81 per share on October 10, 2019: a $2.10 or 19.25% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi Faruqi, LLP also encourages anyone with information regarding ADTRAN’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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